Summary of the Key Rate Discussion released
The publication covers the main aspects of the discussion about the economic situation and inflation, monetary and external conditions, and alternatives to the key rate decision.
The participants in the discussion pointed out that the risks highlighted during the previous key rate meeting had partially materialised in October. New proinflationary factors also emerged, including a significant increase in the recycling fee and a number of regulated tariffs, which will affect inflation in 2024 and 2025.
In this context, additional tightening of monetary policy was needed to bring inflation down to the target and reduce inflation expectations. Following the discussion, the Board of Directors raised the key rate to 21.00% per annum.
The updated medium-term forecast assumes a considerably higher projected path of the key rate for
The Commentary on the Bank of Russia’s Medium-term Forecast was published simultaneously with the Summary.