The Bank of Russia decided to raise the key rate by 75 bp to 7,50% per annum

On October 22, 2021, the Bank of Russia Board of Directors decided to raise the key rate by 75 bp to 7.50% per annum. Inflation is rising significantly faster than predicted by the Bank of Russia for the end of 2021.

Inflation is growing above the July forecast of the Bank of Russia. In September, the monthly seasonally adjusted growth rates of consumer prices increased significantly. Annual inflation grew to 7.4% (after 6.7% in August) and, as of October 18, rose to 7.8%. At the end of 2021, annual inflation is expected in the range of 7.4-7.9%.

Monetary conditions have not changed significantly since the previous meeting of the Bank of Russia Board of Directors.

Economic activity. Operational indicators in the third quarter indicate continued growth of economic activity, with rates slowing down slightly. Inflationary risks. The balance of risks has significantly shifted towards pro-inflationary ones.

The next meeting of the Bank of Russia Board of Directors dedicated to the issue of the key rate level is scheduled for December 17, 2021.

Automatic investment service