Bank of Russia may raise interest to 20%

The Bank of Russia could significantly raise its key interest rate in case inflation could not be brought down in the coming months, Deputy Governor Alexey Zabotkin stated in an interview with Rossiyskaya Gazeta.

Zabotkin highlighted that if inflation does not show clear signs of slowing or if additional risks emerge—such as worsening external conditions, a decline in exports, or reduced access to imports—the key rate could be raised to 20 per cent or higher.

He explained that it takes three to six quarters for the impact of new interest rates to fully influence consumer and business behaviour, credit, demand, and ultimately, inflation.

Zabotkin also clarified that the Bank of Russia’s main objective is to achieve low inflation across a broad range of goods and services, rather than stopping lending.

Attribution: TASS