MOSCOW, July 30. /TASS/. VTB expects the Central Bank’s key rate to remain at the level of 18% per annum by the end of 2024, First Deputy Chairman of the Management Board Dmitry Pianov told reporters.
"Our current key rate outlook is flat at 18% for late Q3 and Q4," he said.
The increase to 18% is resulting in a serious change in the average key rate, Pianov noted. "The average key rate in the previous forecast was 14.7%, whereas now it stands at 16.9%. This is still below the Central Bank’s ceiling that was announced on Friday, but nevertheless, over 2% of downgrade points," he added.
Meanwhile, Pianov noted that the key rate’s increase is an important macroeconomic change, which demonstrated that analysts’ forecasts on its reduction in 2024 fell through.
The board of directors of the Bank of Russia decided to increase the key rate for the first time since December 2023 - by 200 basis points to 18% per annum at a meeting on July 26, saying that inflation had accelerated and was developing significantly above the regulator’s April forecast. The Bank of Russia noted that it would consider the necessity of further key rate increase at its upcoming meetings.