The central bank of Russia announced on Friday that it raised its policy rate by 25 basis points to 4.5%. “The balance of risks has shifted towards pro-inflationary risks“the bank said in its statement. The ruble rose after the decision was made known. The USD / RUB fell as low as 73.73, before returning to the 73.90 zone.
They estimate at the central bank that annual inflation will return to the target around 4% in the first half of 2022 and will remain at that level later on. He added that the bank will continue with the schedule and pace of a return to neutral monetary policy, taking into account the dynamics of real and expected inflation.
To justify the measures, the monetary authority indicated that the rapid recovery in demand and high inflationary pressure require a return to neutral monetary policy. He left open the possibility of further increases in the reference rate in the next meetings.
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