On September 13, 2024, the Board of Directors of the Bank of Russia decided to raise the key rate by 100 basis points to 19% per annum. The current inflationary pressure remains high, the regulator said.
Annual inflation by the end of 2024 is likely to exceed the July forecast range of 6.5–7%. The growth of domestic demand is still significantly outpacing the possibilities of expanding the supply of goods and services.
The Central Bank noted that additional tightening of monetary policy is required in order to resume the process of disinflation, reduce inflation expectations and ensure that inflation returns to the target in 2025.
The Central Bank admits the possibility of raising the key rate at the next meeting. According to the regulator's forecast, taking into account the current monetary policy, annual inflation will decrease to 4-4.5% in 2025 and will be near 4% in the future.
The next meeting of the Board of Directors on the key rate is scheduled for October 25, 2024.
