The Bank of Russia is likely to raise its key rate in July, but a pause in this process cannot be ruled out, said Central Bank Chairman Elvira Nabiullina. Today, June 11, the Board of Directors for Monetary Policy of the Bank of Russia raised the key rate to 5.5%.
“As for the rate hike in July, yes, with a high probability, but, of course, a pause cannot be ruled out either, because in our life, which is much richer than forecasts, all sorts of unforeseen circumstances may occur that will require taking a pause, we cannot rule it out. we can, but with a high probability – this will be an increase in the rate, ”said Ms Nabiullina.
“With regard to the prospects for monetary policy, we are ready for further active actions necessary to bring inflation back to the target. As I said, the board of directors sees the need to raise the rate at the next meetings, ”said the head of the Bank of Russia. According to Elvira Nabiullina, monetary policy will ensure that annual inflation returns to a target of around 4% in the second half of 2022.
Last time, on April 23, the Central Bank raised the rate by 50 bp. etc., up to 5%. 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.
Read about today’s increase in the publication of Kommersant, “The key rate is moving up.”