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VTB top manager admits Central Bank’s key rate increase to 20% in September

The banker noted the current "necessity of a ritual action on the key rate’s increase"

MOSCOW, August 30. /TASS/. First Deputy Chairman of the Management Board of VTB Dmitry Pianov admits an increase in the Central Bank’s key rate from the current 18% to 20% per annum in September amid growing inflation, though he does not rule out that the rate would remain at the current level.

"I consider monetary policy the main intrigue of coming months. <…> I admit two possible options at the next meeting of the Central Bank on the key rate <…> on September 13 <…>, the first is [an increase] from 18% to 20% as suggested by the forecast, or taking a break and expectation of more representational statistics," he told reporters.

The banker noted the current "necessity of a ritual action on the key rate’s increase." "This is related to the fact that the Central Bank has painted itself into a strict inflation range, in the previous update (of the regulator’s forecast - TASS) the inflation range equaled 6.5-7% for the end of this year. The current level brings annual inflation, in our view, to over 7-7.7%," he explained.