Bank of Russia to tighten policy amid inflation concerns
The Bank of Russia has indicated the need for additional tightening of monetary conditions to curb inflationary pressures and bring inflation back to its 4 per cent target by 2025.
According to documents released by the central bank, annual inflation by the end of 2024 is expected to surpass the July forecast of 6.5-7 per cent.
In August, inflation rose by 0.2 per cent, following a 1.14 per cent increase in July, with annual inflation reaching 9.05 per cent.
The Bank of Russia raised its key interest rate from 18 per cent to 19 per cent on September 13, signalling the possibility of further hikes at its next meeting to support the disinflation process and lower inflation expectations.
The central bank projects inflation to fall to 4-4.5 per cent by 2025, remaining near the 4 per cent target in the future.
Attribution: TASS
Subediting: M. S. Salama
