Russian central bank raises interest prices once more
Date
9/19/2024 9:01:48 AM
(MENAFN) The main interest rate at the bank of Russia has been increased from 18 percent to 19 percent due to ongoing inflationary strains. The regulator stated on Friday that the Economy still cannot keep up with domestic demand for goods as well as services.
The declaration also noted that inflation for 2024 is anticipated to surpass the bank's 6.5-7.0 percent forecast from July. Consumer prices rose by 9.1 percent compared to the previous year in August, exceeding the government's 4 percent mark.
The manager added in a statement : ”Additional monetary tightening is needed to restart the disinflation process [the reduction in inflation]… and ensure that inflation returns to the 2025 target,”
In July, the Bank of Russia raised its interest rate by 200 basis points. During the latter part of 2023, the governing body increased the rate on five occasions, elevating it from 7.5 percent to 18 percent.
On Friday, the central bank indicated that an additional increase may occur at the upcoming meeting in October, citing that persistent inflationary pressures “remain generally high and have not yet started on a downward trend.”
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