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Bank of Russia to assess target reduction after inflation stabilization

According to the updated forecast of the Bank of Russia, annual inflation in the country will be 5-6.5% in 2023 and will return to 4% in 2024

MOSCOW, August 11. /TASS/. The Bank of Russia will assess the feasibility and the timeframe of reducing the target inflation level after its stabilization at about 4% and the decrease of general economic uncertainty, the regulator said in its draft monetary policy guidelines for 2024 and the period of 2025-2026 posted on its website.

"Following inflation stabilization near 4% and general economic uncertainty lowering, the Bank of Russia will assess the feasibility and the possible timeline of reducing the inflation target. The Bank of Russia will continue discussing the matter of target lowering with the business, the analytical and expert community, public organizations, the Russian government and the Federal Assembly of the Russian Federation. In case the Bank of Russia decides to reduce the inflation target, it will be announced in advance, several years before the change, to mitigate expenses of transitioning to the new target level," the Central Bank said.

According to the updated forecast of the Bank of Russia, annual inflation in the country will be 5-6.5% in 2023 and will return to 4% in 2024.

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