Nabiullina allowed an increase in the key rate of the Central Bank by 1 percentage point

by time news

The central bank may consider raising the key rate by 0.25-1 percentage points at its July meeting, TASS reported, citing Central Bank Chairman Elvira Nabiullina.

“We believe this move is data driven. We will review the available information in great detail and update our forecast during the July meeting. And also we will make a decision on this step. I think we’ll look at 25 basis points to 1 pp. increase, “- said Nabiullina.

In June, the regulator raised the key rate by 0.5 pp for the second time in a row. Now it is 5.5% per annum, that is, it has returned to the level of June last year. Nabiullina said that it is very likely that the key rate will be increased again at the meeting on July 23. At the same time, she noted that it is impossible to exclude the possibility of maintaining the indicator at the current level, “because in our life, which is much richer than forecasts, various unforeseen circumstances may occur.”

The board of directors, according to Nabiullina, will make the decisions necessary to bring inflation back to the 4% target. According to Rosstat, in May, the annual consumer price index reached a new five-year high of 6.02%. How much the regulator will raise the rate depends on inflation and inflationary expectations. “We believe this move is data driven. We will review the available information in great detail and update our forecast during the July meeting. And also we will make a decision on this step. I think we’ll look at 25 basis points to 1 pp. increase “, – said the chairman of the Central Bank.

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