MOSCOW, October 22. /TASS/. Inflation in Russia will continue to grow, despite another increase in the central bank rate of interest, Presidential Commissioner for Entrepreneurs’ Rights Boris Titov told TASS.
"The Bank of Russia raised the key rate, but inflation will still grow steadily," he said. "Good old-fashioned monetary policy is at least 10 years out of date. The rest of the world lives differently, increases the money supply, stimulates economic growth, and consumer demand. In our country, prices are rising against the backdrop of low demand and high production costs," Titov added.
Earlier on Friday, the Bank of Russia increased the key rate for the sixth time in a row - by 0.75 percentage points to 7.5% per annum, adding that it holds open the prospect of further key rate rises at upcoming meetings. The regulator’s decision was tougher than market projections due to the dynamics of inflation, which is developing substantially above the regulator’s forecast. Meanwhile, the contribution of persistent factors to inflation remains considerable on the back of faster growth in demand relative to output expansion capacity, the Bank of Russia explained.