Translation. Region: Russian Federal
Source: Central Bank of Russia –
An important disclaimer is at the bottom of this article.
Material reflects the main points of the discussion about the economic situation, inflation, monetary and external conditions, and options for solving the key rate.
There is more confidence that the economy is gradually returning to balanced growth, the participants in the discussion stated. This process is based on a tight monetary policy, which is holding back the growth of domestic demand and helping to reduce inflationary pressure. Inflation is slowing down faster than the Bank of Russia predicted. In June, the current rate of price growth was close to 4% on an annualized basis.
Following the discussion, the key rate was reduced by 200 bp to 18.00% per annum. Further decisions on the key rate will be made depending on the sustainability of the inflation slowdown and the dynamics of inflation expectations.
According to the Bank of Russia’s forecast, given the current monetary policy, annual inflation will decrease to 6.0–7.0% in 2025, return to 4.0% in 2026, and remain on target thereafter.
Read more about how the economic situation will develop inComments on the medium-term forecast of the Bank of Russia.
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