MOSCOW, June 11. /TASS/. Russia’s Central Bank is highly likely to raise the key rate at its board meeting in July, though it does not rule out taking a break, the regulator’s Chief Elvira Nabiullina told a press conference following the board meeting on Friday.
"As for raising the rate in July - yes, highly likely <…> the rate will be raised," she said.
"But of course, a break should not be ruled out as well, as in our life, which is much richer than forecasts, there may be various unexpected circumstances that may require a break," Nabiullina added.
Moreover, the Central Bank does not rule out a shift to moderately tight monetary policy, she said, adding that everything will depend on the economic situation. "As far as tight [monetary] policy is concerned, we do not rule out a shift to moderately tight policy, neither we did earlier. But we suggest that the probability is higher now, though it is not inevitable. Everything will depend on the dynamics of economy, inflation, and inflationary expectations," she said.
The board of directors of the Bank of Russia raised the key rate for the second time in a row - by 0.5 percentage points to 5.5% per annum at Friday’s meeting, noting that it will possibly go up in the future. The recovery of the Russian and global economies faster than expected, as well as proinflationary risks, were the reasons of such a decision, the regulator explained.
As of June 7, annual inflation in Russia was up to 6.15%, which is much higher than the Central Bank’s projections for 2021 at the level of 4.7-5.2% provided earlier.