Bank of Russia to maintain policy interest rate unchanged at 21 percent
Date
12/22/2024 6:48:18 AM
(MENAFN) The bank of Russia decided to keep its policy interest rate unchanged at 21 percent on Friday. The central bank stated that monetary conditions had tightened more than initially anticipated following its October decision, attributing this to factors beyond its control. The bank highlighted that annual inflation in the country was 9.5 percent as of December, with expectations for inflation to decrease to 4 percent by 2026.
In its assessment of the economy, the Bank of Russia noted that economic growth for October-November was in line with the third quarter of 2024. It pointed out that high domestic demand remains the primary driver of increasing economic activity, indicating a robust level of consumer spending and investment within the country.
The central bank had raised its policy interest rate by 200 basis points to 21 percent in October, marking a record high. This was part of a series of rate hikes that began in July 2023, when the rate was increased from 8.5 percent to 19 percent. The bank's actions reflect its efforts to combat inflationary pressures and stabilize the economy in the face of various challenges.
Looking ahead, the Bank of Russia anticipates inflation to gradually fall, with the target set at 4 percent by 2026. The bank's focus remains on managing inflation and supporting economic growth amid uncertain external and internal conditions.
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