MOSCOW, February 14. /TASS/. The opinion that the key rate increase boosts inflation is deeply wrong, Governor of the Bank of Russia Elvira Nabiullina said at the press conference after the Board of Directors’ meeting.

"The higher key rate indeed boosts expenses of households and business for loans and loan service but at the same time it restrains the demand surplus that is above capabilities of goods and services production. The effect from surplus demand restraining is much stronger for inflation. Therefore, the rate increase definitely leads to deceleration of the price hike," Nabiullina said.

The Board of Directors of the Bank of Russia kept the key rate at 21% per annum at its first meeting in 2025, as expected before.