The Bank of Russia has raised its forecast for inflation in the Russian Federation for the current year to 4.3-4.8%. This is stated in the regulator's message following the meeting of the Board of directors of the Central Bank, at which the key rate was left at 16%.
The regulator emphasizes that in the medium term, the balance of risks for inflation remains shifted towards pro-inflationary ones.
The main pro-inflationary risks are related to changes in the terms of foreign trade, the persistence of high inflation expectations and the upward deviation of the Russian economy from the trajectory of balanced growth, as well as the trajectory of normalization of fiscal policy.
Disinflationary risks are primarily associated with a faster slowdown in domestic demand growth than expected in the baseline scenario.
Sustained inflationary pressure has decreased, but remains high due to the active growth of domestic demand, the Central Bank emphasizes.
The seasonally adjusted core inflation rate in March decreased to 6.1% year-on-year, after 6.8% in February.
