Central Bank of Russia continues to raise interest rates

Meanwhile, inflation this year is expected to be higher than the bank’s July forecast of 6.5-7.0%. Consumer prices rose 9.1% year-on-year in August, more than double the government’s target of 4%.

“Further tightening of monetary policy is needed to restart the disinflationary process and ensure inflation returns to the 2025 target,” the regulator said in a statement.

According to the Central Bank of Russia, the second interest rate hike this year comes amid persistent inflationary pressures. Photo: RT.

The Bank of Russia raised interest rates by 200 basis points in July. In the second half of 2023, the regulator raised interest rates five times, from 7.5% to 18%.

On September 13, the Central Bank of Russia said it could raise interest rates further at its next meeting in October, as persistent inflationary pressures “remain generally high and have not yet begun a downward trend.”

Asked at a press conference whether the key interest rate could be raised to 20% or more, the head of the central bank, Elvira Nabiullina, said the regulator was "ready to take the necessary decisions to bring inflation back to 4%".

The central bank cited data on gross domestic product (GDP) in the second quarter of this year and economic indicators from July and August as showing that Russia's economic growth "has slowed down somewhat".

The regulator also noted that limited supply and lower external demand were behind the slowdown.

Consumer activity remained strong amid rising household incomes and an all-time low unemployment rate, the agency added.

Russia's GDP to grow 3.6% in 2023 year-on-year. Earlier this month, the Economic Development Ministry raised its forecast for Russia's GDP growth in 2024 to 3.9% from an estimate of 2.8% in April.

An Nhien (According to RT)

Source: https://www.congluan.vn/ngan-hang-trung-uong-nga-tiep-tuc-tang-lai-suat-post312290.html