Nabiullina allowed another increase in the key rate – Kommersant

The head of the Central Bank, Elvira Nabiullina, said that the key rate may remain at 15% this year. At the same time, she admitted that the rate could be increased one more time before the new year, but in this case, next year the Central Bank will reduce it as inflation decreases.

“What our model calculations and professional judgment say is the rate could stay at this level this year, but there could be another increase, but then as inflation goes down, we say that next year we will start reducing the rate.” “, Elvira Nabiullina said in the State Duma, answering a deputy’s question about a possible rate increase (her words were quoted by Reuters).

According to the head of the regulator, the decision to increase the rate depends on how the Central Bank’s base scenario is implemented. “Our life, unfortunately, is very changeable, and every time we make a decision, every time we discuss the situation in the economy, restrictions, and so on,” added Elvira Nabiullina.

The Central Bank has set the range of the average key rate for the remaining period of 2023 at 15.0–15.2%. The Bank of Russia will hold its last meeting this year on the issue of the key rate on December 15.

In July, the Central Bank raised the key rate to 8.5%, in August – to 12%, in September – to 13%, in October – to 15%. Thus, from July to October the rate doubled: from 7.5% to 15%.

The main points of Elvira Nabiullina’s speech in the State Duma are in selection “Ъ”.

Anastasia Larina