Russia’s c.bank hints at another interest rate hike in Oct

The Bank of Russia has signaled that it may raise its benchmark interest rate again at its upcoming meeting on October 25th. Governor Elvira Nabiullina stated that another rate hike could be necessary to achieve the bank’s inflation target of 4 per cent in 2025.

This announcement follows a 100-basis point increase in the benchmark interest rate earlier this month, reflecting concerns over persistent inflation. The bank has acknowledged that inflation remains stubbornly high and requires further action to bring it back in line with its target.

Earlier this month, the Bank of Russia raised its official forecast for inflation in 2024 to 7.3 per cent

“Do not expect the central bank to allow the country to have high inflation,” Nabiullina stated.

Bank of Russia hiked its benchmark interest rate by 100 basis points to 19 per cent at its September 13 meeting, explaining that inflation is still stubbornly high and action was needed to curb it.

Attribution: Reuters