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CBR considers inflation risks more than economic recession, does not rule out hike of rates

The Central Bank of Russia (CBR) is confident that the inflation risks exceed the economic recession risks

Photo ITAR-TASS

Photo ITAR-TASS

MOSCOW, October 2 (Itar-Tass) —— The Central Bank of Russia (CBR) is confident that the inflation risks exceed the economic recession risks, CBR First Deputy Chairman Alexei Ulyukayev told reporters on Tuesday.

“We think that inflation risks are higher [than economic recession risks],” Ulyukayev said, adding, “We will consider the whole range of possible scenarios. We do not rule out that the rates will remain unchanged or will be raised.”

In his words, the Central Bank’s Board will gather for a meeting on Friday, October 5, to discuss the refinancing rate issue.

At the preceding meeting on September 14, the Central Bank’s Board of Directors made a decision to raise the refinancing rate and the interest rates on the bank’s transactions by 0.25 percent points from eight percent to 8.25 percent.

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