The Russian Central Bank raised the key rate to 21%
The Russian Central Bank raised the key rate to 21%.
Key statements from Elvira Nabiullina, Governor of the Central Bank of Russia:
The Central Bank does not observe signs of a slowdown in inflation in the Russian Federation.
According to the Bank of Russia’s forecast, given the current monetary policy, annual inflation will decrease to 4.5–5.0% in 2025, 4.0% in 2026 and will remain on target in the future.
The problem of personnel shortage has worsened:
“In terms of opportunities to increase production of goods and services, problems have become more acute. Available capacities and labor resources are being used more intensively. Tension in the labor market remains.“
Unemployment rate in August remained close to historical minimum of 2.5%, and wage growth outpaced labor productivity growth.
Inflation in 2024 will be twice as high as the target, this does not mean that the key rate is not working, without its increase, inflation would be much higher.
Russian economy ’overhe...
Source: The Islander
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