Business · Economy · 15 hrs ago

Russia's central bank ties future rate decisions to inflation

Russia's central bank ties future rate decisions to inflation

The Bank of Russia says future interest rate decisions will depend on inflation and people’s expectations for how prices will change.

It will also assess risks from conditions inside and outside the country.

The bank’s baseline forecast puts the average key rate at 12.5% to 13.5% in 2027.

A key rate is the central bank’s main policy rate and influences borrowing costs across the economy.

The bank expects annual inflation to return to 4% in 2027 and remain at that target afterward.

Its next rate decisions will depend on how inflation and the risks develop.

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What people are saying

Central BankRussia’s central bank
The Bank of Russia will make further key rate decisions based on the dynamics of inflation and inflation expectations as well as the analysis of risks posed by domestic and external conditions.
via TASS
The baseline scenario assumes that the key rate will average 12.5-13.5% per annum in 2027.
via TASS
Given the monetary policy stance, annual inflation will return to 4.0% in 2027 and stay on target further on.
via TASS