The Central Bank of Russia decided to maintain its basic interest rate at 7.5% this Friday (10) after a monetary policy meeting.
It was the third time in a row that the Russian BC maintained the basic interest rate, after aggressively cutting it between April and September last year.
In a statement, the BC of Russia said that inflation expectations of households and companies have been decreasing, but remain high, and that economic activity is evolving above its forecasts in October.
In its projections, the institution predicts that, given the current monetary policy stance, Russian annual inflation will be between 5% and 7% in 2023, before slowing down to 4% in 2024.
However, the Russian Central Bank assesses that the capacity to expand production in the economy is “widely” limited, with unemployment close to its historic low.
“Labor shortages are increasing in many industries amid the effects of partial mobilization and a general increase in corporate demand for the workforce. Under these conditions, labor productivity growth may lag behind real wage growth.
Source: CNN Brasil
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
