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Bank of Russia to consider raising key rate in December

According to Advisor Kirill Tremasov, the official inflation forecast of the Bank of Russia for the end of the current year is 8-8.5%, by the end of next year it should be 4-4.5%

MOSCOW, November 28. /TASS/. The Bank of Russia will consider raising the key interest rate at a meeting in December, Advisor to the Governor of the Bank of Russia Kirill Tremasov said.

"At the December meeting we will consider the forecast for a further increase in the key rate, although this has not yet been predetermined. <...> The forecast for the average annual value of the key rate is 17-20%. However, the Bank of Russia is not obliged to keep the key rate at this level. If the economy continues to develop faster than expected, the rate may be higher, and vice versa," he said, adding that the neutral level of the key rate, at which the economy will be in a state of equilibrium, is expected to be reached in 2027.

According to Tremasov, the official inflation forecast of the Bank of Russia for the end of the current year is 8-8.5%, by the end of next year it should be 4-4.5%. "Low inflation, low inflation expectations and price stability will lead to interest inevitably decreasing and this is what we will strive for," he stressed.

He also reported that "under the conditions of constant sanctions pressure, exchange rate volatility, pro-inflationary pressure is growing". "A long period of tight monetary policy will be needed to restore price stability," Tremasov said.

The meeting of the Board of Directors of the Bank of Russia on the key rate will be held on December 20.