Russia left the key rate at 21% per annum, the Central Bank's press service reported .Why the Central Bank kept the rate unchangedThe Central Bank left the rate unchanged because monetary conditions tightened more significantly than the October key rate decision had envisaged. This was facilitated by factors independent of monetary policy: tightening of macroprudential policy,
planned normalization of banking regulation, and increased requirements for banks to borrowers.The growth of rates for borrowers and the cooling of credit activity create preconditions for inflation to return to the target, despite the increased current growth of prices and high domestic demand, the Central Bank
believes. They predict that annual inflation will decrease to the targe poland number for whatsapp t value of 4% in 2026.According to estimates as of December 16, annual inflation increased to 9.5%. "For some time, the current price growth will remain elevated due to inertia due to the accumulated effects of budget stimuli, high credit activity of previous months and the transfer of the weakening of the ruble to prices. However, according to the Bank of Russia, in the coming months, inflationary
According to estimates as of December 16, annual inflation increased to 9.5%. "For some time, the current price growth will remain elevated due to inertia due to the accumulated effects of budget stimuli, high credit activity of previous months and the transfer of the weakening of the ruble to prices. However, according to the Bank of Russia, in the coming months, inflationary pressure will begin to decrease under the influence of tight monetary conditions and a slowdown in lending," the regulator said in a statement.
The Bank of Russia will assess the advisability of raising the key rate at the next meeting, taking into account the further dynamics of lending and inflation.
On December 28, the Central Bank will publish a summary of the key rate discussion. The next meeting is scheduled for February 14, 2025.
Experts predicted that the key rate would increase by 2 percentage points, to 23% per annum. This was supported by high inflation and the weakening of the ruble, which fell against the dollar by 11% in November, to 114 rubles per dollar. The official exchange rate for December 20, 2024 is 103.42 rubles.
Some analysts allowed for the rate to increase to 24-25% per annum. This level should become the ceiling, economists noted. No one expected the rate to remain at 21% per annum.