MOSCOW, July 24. /TASS/. Russia’s Chamber of Commerce and Industry expects the key rate to be raised by 50-75 basis points at the upcoming meetings of the board of directors of the Bank of Russia, President of the Chamber Sergey Katyrin told TASS, adding that the country’s business circles are preparing for further increase in the key rate.

"The decision may be called expected. Moreover, the regulator admits further increase in the key rate at the upcoming meetings. This is being done for stabilizing inflation close to 4%. Due to this the business community is preparing for a tightening cycle. The Russian Chamber of Commerce and Industry projects the rate to rise by 50-75 basis points at the upcoming meetings of the Central Bank’s board of directors," he said.

The increase in the rate will not substantially influence businesses’ operating processes and their investment plans, Katyrin added.

"That said, this will lower the access to loans in the segment of small and medium-sized enterprises, for which the Central Bank’s rate of 5% is ideal amid the current conditions," he explained.

The Central Bank’s board of directors sharply increased its key rate after a long pause at a meeting on July 21 from 7.5% to 8.5% per annum, noting reinforced inflationary pressure in the economy. The Bank of Russia added that it holds open the prospect of further key rate increase at its next meetings to stabilize inflation close to 4% in 2024 and further on.