According to Xinhua News Agency, the Central Bank of Russia announced on the 26th that it will maintain its benchmark interest rate at the current level of 16%. The Russian central bank stated that the current inflationary pressure in Russia is gradually easing, but it is still at a relatively high level. Due to the sustained increase in domestic demand exceeding the possible range of supply expansion, the rate of inflation falling towards the 4% target will be slower than predicted by the Russian central bank in February, which means that maintaining a relatively tight monetary policy will take longer than expected. The Russian central bank predicts that the inflation rate will drop to the level of 4.3% to 4.8% in 2024, and is expected to drop to 4% by 2025. The Russian central bank announced on July 21 last year that it would raise its benchmark interest rate by 100 basis points to 8.5%. This is the first time since September 2022 that the Russian central bank has raised its benchmark interest rate. In the following months, the Russian central bank repeatedly raised benchmark interest rates. On December 15th last year, the Russian central bank raised its benchmark interest rate to 16%.
According to Xinhua News Agency, the Central Bank of Russia announced on the 26th that it will maintain its benchmark interest rate at the current level of 16%. The Russian central bank stated that the current inflationary pressure in Russia is gradually easing, but it is still at a relatively high level. Due to the sustained increase in domestic demand exceeding the possible range of supply expansion, the rate of inflation falling towards the 4% target will be slower than predicted by the Russian central bank in February, which means that maintaining a relatively tight monetary policy will take longer than expected. The Russian central bank predicts that the inflation rate will drop to the level of 4.3% to 4.8% in 2024, and is expected to drop to 4% by 2025. The Russian central bank announced on July 21 last year that it would raise its benchmark interest rate by 100 basis points to 8.5%. This is the first time since September 2022 that the Russian central bank has raised its benchmark interest rate. In the following months, the Russian central bank repeatedly raised benchmark interest rates. On December 15th last year, the Russian central bank raised its benchmark interest rate to 16%.