Russia's central bank says inflationary pressures remain stable over past 2 months

(MENAFN) Russia's central bank has yet to make a decision on the policy interest rate for December, according to Deputy Governor Alexei Zabotkin. He noted that inflationary pressures in the country have remained relatively stable over the past one or two months. This period of stability in price increases has provided the central bank with a clearer view of the current economic landscape, though it has not yet finalized its stance for the upcoming month. The decision on the policy rate remains under review as the economic conditions evolve.

Zabotkin shared his expectation that the central bank will likely raise the policy rate in December, but he emphasized that the final decision has not been determined. While he did not rule out the possibility of a rate hike, he made it clear that the decision would be based on a thorough assessment of the economic situation at that time. The central bank is taking a cautious approach, aiming to balance inflation control with the broader economic environment.

According to Zabotkin, the central bank’s board will make the final call on the interest rate based on the economic data and developments it observes in mid-December. This careful evaluation of the economic picture will allow the bank to align its policy measures with the prevailing conditions, which could include inflation trends, growth outlook, and other key economic indicators. The decision process reflects a flexible approach, ensuring that policy actions are well-timed and effective.

The most recent change to Russia's policy rate occurred on October 25, when the central bank raised the rate to a historic high of 21 percent, marking an increase of 200 basis points. This move was part of the bank’s efforts to address inflationary pressures and stabilize the economy. The sharp increase in the interest rate reflects the central bank's determination to manage price growth, signaling its commitment to tackling inflation while maintaining economic stability.

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