Central Bank raised the key rate to 5.5%

The Board of Directors for Monetary Policy of the Bank of Russia raised the key rate by 50 basis points (bp) to 5.5%. Last time, on April 23, the Central Bank also raised the rate by 50 bp. etc., up to 5%.

“The Board of Directors of the Bank of Russia has decided to raise the key rate by 50 bp. p., up to 5.50% per annum. The Russian and global economies are recovering faster than previously expected, “- said in a statement on the website of the Central Bank of the Russian Federation.

The regulator notes that inflation is developing above the forecast. In May, annual inflation increased to 6.0%, after 5.5% in April. As of June 7, annual inflation rose to 6.15%. The Central Bank reports that in the context of the ongoing monetary policy, annual inflation will return to the target in the second half of 2022, and after that it will be at about 4%.

The Bank of Russia expects the Russian economy to return to pre-crisis levels in the second quarter of 2021. The next meeting of the board of directors of the regulator on the level of the key rate is scheduled for July 23.

In March, the rate was raised to 4.5%, the first increase since 2018. Before the March meeting of the board of directors, the regulator kept the rate at 4.25% four times.

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