maintaining the current exchange rate of the ruble has a significant pro-inflationary contribution – Kommersant

The ruble, which has weakened since the beginning of the year, while maintaining its current exchange rate, will have a significant pro-inflationary contribution throughout the year, said Alexei Zabotkin, deputy chairman of the Central Bank (CB). According to him, this was one of the factors that guided the Central Bank when making decisions on monetary policy. At the next meeting, the rate may be raised, he said.

As Mr. Zabotkin clarified, now the nominal exchange rate of the ruble is weaker than it was in January 2022. “Last year, in the second half of the year, a strong exchange rate had a disinflationary contribution to price dynamics and was one of the factors that allowed inflation to quickly slow down in the second half of last year. During this year, while maintaining the exchange rate at current levels, it will have a significant pro-inflationary contribution, ”he told reporters (quoted by RIA Novosti).

According to the deputy chairman of the Central Bank, for quite a long time the rate of 7.5% corresponded to what, in the understanding of the regulator, contributed to the goal of stabilizing inflation at 4%. “So far, the data has confirmed this. But we see that the balance of risks is increasingly skewed towards pro-inflationary. … Therefore, at the upcoming meeting of the Board of Directors of the Bank of Russia, they allow the possibility of raising the key rate after this significant period, while it remained unchanged,” Mr. Zabotkin said.

At the beginning of June, the Central Bank left the key rate remains unchanged – at the level of 7.5% per annum. The regulator leaves this indicator unchanged for the sixth time since September 2022. The next meeting of the Board of Directors of the Central Bank is scheduled for July 21.

Details – in the material “Kommersant” “The key rate remained the same”.

Laura Keffer