The Bank of Russia warned of a shift in risks towards pro-inflationary ones
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The monetary policy of the Central Bank will be aimed at returning to the inflation rate of 4% in 2024. However, the Central Bank sees the growth of pro-inflationary factors from the labor market, budget and balance of payments.
“Possible intensification of consumer activity against the backdrop of growing household liquid savings and an increase in incomes at a rate outpacing economic growth, as well as a weakening of the ruble, carry pro-inflationary risks,” says the Central Bank’s review “What Trends Say” (pdf).
The Central Bank also notes the prerequisites for maintaining cautious consumer behavior due to high uncertainty and increased geopolitical risks.
In June 2022, the Bank of Russia reported on decline pro-inflationary risks. On February 10, a meeting of the Board of Directors of the Central Bank will be held, during which the level of the key rate will be discussed.
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