The Central Bank will be ready to further raise the key rate if it does not see a slowdown in inflation, said Deputy Chairman of the Bank of Russia Olga Polyakova. She recalled that at recent meetings the Central Bank raised the key rate at a “very noticeable pace” – by 7.5 percentage points, to 15% per annum.
“If necessary, we will be ready to do this again if we do not see signs of a sustainable slowdown in inflation and a cooling of inflation expectations,” Ms. Polyakova said at the XI Congress of Financiers of Kazakhstan (quoted by TASS).
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 head of the Central Bank, Elvira Nabiullina, admitted last week 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 declines.
The reasons for the rate increase can be found in the Kommersant publication “Race with Inflation.”