Russia’s Deputy Governor of the central bank, Olga Polyakova, has stated that the bank is prepared to raise the key interest rate further if there are no signs of a sustainable slowdown in inflation. The central bank has already raised the rate by 7.5 percentage points to 15 percent per annum in recent meetings.
The move comes amid mounting inflationary pressure, and the bank last raised the key interest rate by 2 percentage points to 15 percent at the end of October. Russia’s inflation forecast for 2023 has been adjusted from 7 percent to 7.5 percent, up from the previous estimate of 6 percent to 7 percent, reflecting the challenging economic conditions.