The Central Bank raised the key rate by 75 bps

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AK&M 22 October 2021 14:34

On October 22, 2021, the Board of Directors of the Bank of Russia decided to raise the key rate by 75 bps to 7.5% per annum. Inflation is significantly higher than the forecast of the Bank of Russia and is expected to reach 7.4-7.9% by the end of 2021, the regulator said in a statement.

The contribution to inflation from stable factors remains significant due to the faster expansion of demand compared to the possibilities of increasing output. Under these conditions and taking into account the newly increased inflation expectations, the balance of risks for inflation is significantly shifted towards pro-inflationary ones. This may lead to a longer deviation of inflation upward from the target, the Central Bank emphasizes.