The Central Bank allowed the increase in the key rate at the next meetings – Kommersant

The Bank of Russia admits that in order to contain inflation, it will be necessary to raise the key rate already at the next meetings. The rate change step will depend on how the regulator assesses the risks to achieve a target inflation of 4% in 2024, Central Bank Chairman Elvira Nabiullina said following a meeting of the Board of Directors of the Bank of Russia.

“In the context of growing inflationary pressure, we admit the possibility that in order to contain inflation, an increase in the key rate will be required already at the next meetings. The rate change step will be determined by the extent to which the incoming data will influence our assessment of the balance of risks to achieve the 4% target in 2024,” the press service of the Central Bank reports. Telegram.

During the meeting, Mrs. Nabiullina also said that in May the dynamics of the annual indicator turned to growth after 12 months of decline. The current rate of price growth is already close to 4% in annual terms, said the head of the Central Bank. According to her, the main reason for the rise in inflation is consumer demand, which, according to the regulator’s latest data, grew faster in the second quarter than expected by the Central Bank.

At the same time, Ms. Nabiullina expects the Russian economy to return to pre-crisis levels in 2024. According to her, one of the growth points is domestic tourism. In addition, mechanical engineering grew in many regions, the output of non-ferrous metallurgy and the chemical industry increased in Siberia, and the output of ferrous metallurgy enterprises increased in Central Russia and the Urals, the head of the Central Bank said.

Today, June 9, the Bank of Russia kept its key rate at 7.5% for the sixth time in a row. At the same time, the Central Bank noted that economic activity is growing faster than the regulator expected in April, which reflects the active recovery of domestic demand, a significant contribution to which is provided by state investments.

More details – in the material “The key rate remained the same”.

Erdni Kagaltynov