The Central Bank announced the sharpest increase in the key rate since 2014

 The Central Bank announced the sharpest increase in the key rate since 2014

The regulator will increase it to 6.5%.

The central bank announced its decision to raise the key rate immediately to 6.5%, by one percentage point, as a result, the growth is recognized by experts as the highest since 2014.

Recall that then the Central Bank, against the background of the devaluation of the ruble and the growth of inflation, increased it from 10.5 to 17%.

The same applies to the inflation forecast, which was 5.7-6.2% at the end of 2021, according to the Central Bank’s website.

At the same time, it is predicted that the price growth will return to the pre-pandemic level, to 4 -4.5% only next year.

Analysts of the Central Bank note that the return of the Russian economy in the second quarter of the year to the level that was demonstrated before the outbreak of the epidemic led to a gap between output and growing demand.

This, in turn, affected the upward deviation of inflation from the target of 4%, and the slowdown in the recession.

The regulator’s statement says that the Central Bank assumes a further increase in the rate. The expediency of such decisions will be evaluated at the next meeting of the Board of Directors.

Recall, as RBC wrote, earlier market analysts predicted an increase in the key rate, which was fixed at the level of 0.5 & # 8211; 1 point. The most accurate forecast was given by Bloomberg, assuming that the growth will be 1 percentage point, which happened.

It is known that in June, the price increase in Russia amounted to 6.5%, which was the highest value since 2016. So, for example, compared to May, potatoes increased in price by 20.3%, building materials by 23.9%.

In July, growth slowed down, which is why Rosstat reported deflation of 0.01%.

Earlier, Topnews wrote that in the spring of last year, Russian banks announced an increase in mortgage rates and deposits.


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