RUSSIA: CBR Will Assess Need for Key Rate Hike at Upcoming Meeting
Feb-14 10:34
Highlights from the policy statement:
- The achieved tightness of monetary conditions creates the necessary prerequisites for resuming disinflation processes and returning inflation to the target in 2026.
- The Bank of Russia will assess the need for a key rate increase at its upcoming meeting, taking into consideration the speed and sustainability of the inflation slowdown.
- The baseline scenario provides that returning inflation to the target will require a longer period of maintaining tight monetary conditions in the economy than it was forecast in October.
- According to the Bank of Russia’s forecast, given the monetary policy stance, annual inflation will decline to 7.0–8.0% in 2025, return to 4.0% in 2026 and stay at the target further on.
- Over the medium-term horizon, the balance of inflation risks is still tilted to the upside.
Updated medium-term forecasts here.
- "BANK OF RUSSIA SEES END-2025 INFLATION 7%-8%, SAW 4.5%-5%" - BBG
- "BANK OF RUSSIA SEES 2025 GDP GROWTH 1%-2%, SAW 0.5%-1.5%"
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