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Deputy Chairman of the Central Bank of the Russian Federation Zabotkin admitted the possibility of raising the key rate in October
"We allow for a rate increase at the next meeting," said Zabotkin (quoted by TASS).
The Central Bank's management has repeatedly stated that it intends to reduce the inflation rate in Russia to 4% per year. In these circumstances, there is no upper limit for the key interest rate. Earlier, VTB Group Chief Economist Rodion Latypov told RG that an increase in the interest rate was already predetermined, since inflation had significantly reached the upper limit of the Central Bank's expectations. The expert community began discussing the possibility of raising interest rates not only by 20% per annum, but also by 21%.
The current base interest rate is 19% per annum, and the central bank's board of directors raised it from 18% at its meeting on September 13. Many banks have already considered such a change in deposit and lending rates.