The Bank of Russia announced on Friday that leaves the monetary policy rate unchanged at 20% as expected.
Conclusions of the monetary policy statement
“Inflationary risks have increased considerably and are now prevalent throughout the forecast horizon.”
“On a longer horizon, the Russian economy faces considerable uncertainty“.
“Annual inflation will return to 4% in 2024.”
“Preliminary indicators, including the Bank of Russia business survey, suggest a deteriorating situation in the Russian economy“.
“The GDP will decrease in the coming quarters.”
“The monetary policy will allow a gradual adaptation of the economy to new conditions and a return of annual inflation to 4% in 2024.”
“Real inflation movements will be taken into account and expected in relation to the objective and the economic evolution in the foreseen horizon”.
“Risks posed by internal and external conditions will be taken into account. and the reaction of the financial markets.”
“A drastic change in external conditions for the Russian economy that occurred at the end of February has created threats to financial stability“.
“Capital controls helped support the stable functioning of the Russian financial system.”
“Weekly estimates show that inflation has accelerated significantly since early March“.
“The economy is entering the phase of a large-scale structural transformation, which will be accompanied by a temporary but inevitable period of rising inflation.”
Source: Fx Street
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