The Central Bank of the Russian Federation made an unexpected decision on the key rate
The Central Bank of the Russian Federation, contrary to analysts’ forecasts, kept the key rate at 21% per annum.
This decision was made on December 20 at a meeting of the Board of Directors of the Central Bank of Russia.
This was reported by TUT NOVOSTI with reference to the regulator’s press service.
Why the Central Bank of the Russian Federation did not raise the key rate
According to the Central Bank of the Russian Federation, monetary conditions have tightened more significantly than the key rate decision made in October suggested.
This was facilitated by factors independent of monetary policy.
According to the regulator, the tightening of monetary conditions created the preconditions for the resumption of disinflation and the return of inflation to the target.
At the next meeting, the Central Bank of the Russian Federation will assess the advisability of raising the key rate.
According to the regulator’s forecast, the current monetary policy will help reduce annual inflation to 4% in 2026.
In the future, annual inflation, according to the Central Bank of the Russian Federation, will remain on target.
As of December 16, annual inflation rose to 9.5%.
On December 28, the regulator will publish the Summary of the Key Rate Discussion.
The next meeting to consider the key rate issue will take place on February 14.
