Central Bank of Russia

September 10, 2021

The Bank of Russia‘s key interest rate was lifted for the fifth time since March. In all, the rate has climbed 250 basis points to 6.75%, but today’s move of 25 basis points matched the previously smallest change, which happened to be the initial increment. With GDP back to its pre-pandemic level and “given high inflation expectations, the balance of risks for inflation is tilted to the upside. This may bring about a more sustained deviation of inflation from the target. The Bank of Russia’s monetary policy stance is aimed to limit this risk and return inflation to 4%.” Today’s statement considers more rate hikes likely.

Copyright 2021, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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