VELIKY NOVGOROD, September 21. /TASS/. Sberbank CEO Herman Gref expects to see an easing of the Bank of Russia’s monetary policy in six months, he told reporters.
"Yes, I expect it [monetary policy easing in six months]," he said.
Earlier, Gref also said he believes that in six months the Bank of Russia could begin a cycle of lowering the key rate.
On September 15, the Bank of Russia raised the key rate by 100 basis points to 13% per annum and said it would assess the feasibility of its further increase at upcoming meetings. "On 15 September 2023, the Bank of Russia Board of Directors decided to increase the key rate by 100 basis points to 13.00% per annum. Inflationary pressure in the Russian economy remains high. Significant proinflationary risks have crystallized, namely the domestic demand growth outpacing the output expansion capacity and the depreciation of the ruble in the summer months. Therefore, it is required to additionally tighten monetary conditions to limit the upward deviation of inflation from the target and return it to 4% in 2024. The return of inflation to the target and its further stabilization close to 4% also implies that tight monetary conditions will be maintained in the economy for a long period," the statement said.
The Bank of Russia also will make its further decisions on the key rate, "taking into account actual and expected inflation movements relative to the target and the progress of the structural transformation of the economy, as well as assessing risks from internal and external conditions and financial markets’ response to these risks."
The Bank of Russia Board of Directors will hold its next rate review meeting on October 27.