The Central Bank of Russia left the policy interest constant at 21 percent within expectations.
In a statement made by the bank, despite the recent decrease in inflationary pressure continued to watch high.
The growth in domestic demand, the expansion of the supply of goods and services significantly left behind attention, the statement that the cooling of credit activities has become more pronounced, but consumer expenditures remained high.
The statement said that the cooling of strict monetary policy and loans is expected to make it possible to reach the inflation target as of 2026.
“The Central Bank of Russia has decided to keep the policy interest rate constant at 21 percent,” the statement said, “The Central Bank of Russia,” The expression was used.
In the statement, it was underlined that the issue of increasing policy interest rates will be evaluated in future meetings if inflationary pressure did not decrease.
Analysts were also expecting the Russian Central Bank to keep the policy interest constant.
Inflation cannot be controlled
Immediately after the beginning of the Russian-Ukraine war, the Central Bank of Russia increased its policy interest to 20 percent, the highest level of all time.
The policy interest was kept at 16 percent from the end of 2023 to the end of July 2024, and in 2024, four consecutive interest rates were made.
The bank recently increased its policy rate to 21 percent by increasing 200 basis points on October 25, 2024.
While the annual inflation in the country is about 10 percent, the bank aims to reduce this rate to 4 percent.
Experts believe that the Russian government’s expenditures adversely affect inflation in the country.
