The Central Bank announced the biggest hike in the key rate since 2014

The Central Bank announced the biggest hike in the key rate since 2014

The regulator will raise it to 6.5%.

The Central Bank has announced its decision to immediately raise the key rate to 6.5%, by one percentage point, as a result, experts recognize the growth as the highest since 2014.

Recall that then the Central Bank Bank is in the context of the devaluation of the ruble and the growth of inflation has taken it from 10.5 to 17%.

The same goes for the inflation forecast, which at the end of 2021 was 5.7-6.2%, according to the Central Bank website.

At the same time, the price hike is predicted to return to pre-pandemic levels, to just 4 -4.5% next year.

Central Bank analysts note that the return of the Russian economy is already in the second quarter of the year at the level that was demonstrated before the start of the epidemic , has led to a gap between production and growing demand.

This, in turn, affected inflation to deviate upwards from the 4% target, and slow the decline.

The regulator's statement says the central bank is assuming a further rate hike. The feasibility of such decisions will be assessed at the next board meeting.

Recall, as RBC wrote, earlier market analysts predicted a rate hike. director, which was set at 0.5 & # 8211; 1 point. The most accurate forecast was given by Bloomberg, assuming growth will be 1pp, which has happened.

It is known that in June the price growth in Russia amounted to 6.5%, which was the maximum value since 2016 … So, for example, by compared with May, potato prices rose 20.3%, building materials 23.9%.

In July growth slowed, which is why Rosstat reported deflation of 0.01%.

Earlier, Topnews wrote that in the spring of last year Russian banks announced an increase in mortgage and deposit rates.


Leave a Reply

Your email address will not be published. Required fields are marked *