increaseThe Central Bank of Russia plans to start reducing key rate in 2024, said its head Elvira Nabiullina. According to her, this will be possible after the Bank of Russia returns inflation to the target.
Speaking in the State Duma, Nabiullina warned that the key rate will remain high for some time.
“ Our base scenario shows that next year we will return inflation to the target of four% and accordingly we will be able to begin reducing the rate,” said the head of the Central Bank.
Note that the key rate is the minimum interest rate at which the Bank Russia issues loans to commercial banks, and against which it is ready to accept funds for deposits.
Recall that at the end of October the Bank of Russia sharply raised the key rate to 15% per annum. The day before, on November 15, the Central Bank said that it was again ready to make an increase if this is necessary for a sustainable slowdown in inflation.
Nabiullina stated that the Bank of Russia is forced to take these steps in order to reduce losses for both Russians and business.