The Central Bank kept the key rate at 16% – Kommersant

The Bank of Russia kept the key rate at 16%. Before that, it was increased five times in a row – by only 850 basis points. In December it was increased from 15 to 16%.

IN release on the key rate, the Central Bank noted that the return of inflation to the target and its further stabilization near 4% implies a long period of tight monetary conditions. According to the regulator’s forecast, taking into account the current monetary policy, inflation in 2024 will drop to 4-4.5%.

According to the Bank of Russia, the current price increase for December-January averaged 6.6% in annual terms (compared to 11.5% in the autumn months). The same indicator of core inflation decreased during the reporting period from 10.2% to 7%. Annual inflation remains close to the levels of December last year and is estimated at 7.4% as of February 12, the Central Bank reported.

February 8, Deputy Chairman of the Central Bank Alexey Zabotkin confirmed plans to reduce the rate in 2024. However, the exact timing of the start of this process depends on inflation dynamics. In November, Central Bank Chairman Elvira Nabiullina also spoke about plans to reduce the key rate as the inflation rate approaches 4%. In December, the Russian Ministry of Finance predicted that inflation in 2024 would be 4.5%. At the end of last year, inflation was 7.59%.

The news is being updated.