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25 Oct 2024, 12:45

Bank of Russia projects average key rate at 21-21.3% range by end-2024

The outlook on the average key rate for 2027 remained unchanged at 7.5-8.5%

MOSCOW, October 25. /TASS/. The Bank of Russia has upgraded its outlook on the average key rate for 2024-2026. The regulator expects the average key rate at the range of 21-21.3% by the end of this year, according to the regulator’s mid-term forecast.

In particular, the average key rate projection has been raised to 17.5% from 16.9-17.4% expected earlier for 2024, to 17-20% from 14-16% for 2025, and to 12-13% from 10-11% for 2026.

The outlook on the average key rate for 2027 remained unchanged at 7.5-8.5%.

The Bank of Russia has also downgraded its outlook on the price of Brent crude oil for 2024 to $80 from $85 per barrel expected earlier, while the projection for 2025 remained intact at $80 per barrel, according to the regulator’s mid-term forecast.

The outlook for 2026 and 2027 remained at $75 and $70 per barrel, respectively.

The Bank of Russia sharply raised the key rate by 2 percentage points to a record level of 21% per annum at the meeting of the board of directors on Friday. It also did not rule out the possibility of its further increase at the next meeting, saying that further tightening of monetary policy is required to ensure the return of inflation to the target and reduce inflation expectations.