The Bank of Russia, at today’s meeting of the Board of Directors, decided to reduce the key rate from 8% to 7.5%
“Current consumer price growth remains low, contributing to a further slowdown in annual inflation. This is due to both the influence of a set of one-time factors and restrained consumer demand. The dynamics of business activity is developing better than the Bank of Russia expected in July,” the regulator said in a statement.
However, external conditions for the Russian economy remain difficult, the Bank of Russia added, and continue to significantly limit economic activity. Thus, inflationary expectations of the population and price expectations of enterprises remain at an elevated level.
The Bank of Russia removed the signal on its further actions from the statement on the key rate.
According to the forecast of the regulatur, annual inflation will be 11–13% in 2022, and, taking into account the ongoing monetary policy, it will decrease to 5–7% in 2023 and return to 4% in 2024.