MOSCOW, October 16. /TASS/. Russia’s budget expenses for servicing the country's public debt and preferential credit programs could amount to 200 bln rubles ($2.05 bln) due to key rate hike, Deputy Finance Minister Vladimir Kolychev said on Monday.
"There is (the Ministry of Finance's estimate of the costs associated with the rate increase - TASS). There is more than 200 bln [rubles] per percentage point," he said, when asked if the Ministry of Finance has an estimate of how much budget expenditures rise if the key rate rises by one percentage point.
In response to the question of whether the estimate was lower last year, Kolychev stated that it was most likely not lower a year ago.
Earlier, the Bank of Russia raised the key rate by 100 basis points to 13% per annum and said it would consider the feasibility of its further increase at upcoming meetings. "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 regulator said. The Bank of Russia Board of Directors will hold its next rate review meeting on October 27.