Chairman of the Central Bank of the Russian Federation Elvira Nabiullina
©Vladislav Shatilo/RBC/TASS
The probability of an increase in the key rate of the Central Bank of the Russian Federation in 2023 exceeds the probability of its decrease. This was announced at a press conference by the Chairman of the Bank of Russia Elvira Nabiullina.
“External conditions have worsened somewhat. In general, the risks are still biased towards pro-inflationary ones, so we continue to believe that the likelihood of a rate increase this year exceeds the likelihood of its reduction,” the head of the regulator said. Her words on Friday, March 17, quotes prime agency.
TSB RF kept the key rate at 7.5% per annum for the fourth time in a row. The Bank of Russia said that further decisions on the rate will be made taking into account inflation dynamics relative to the target, the process of economic restructuring, as well as taking into account risk assessments from internal and external conditions and the reaction of financial markets to them.
In February of this year, the head of the Central Bank did not exclude the possibility of reducing key rate in 2023. In August last year, the regulator predicted a decrease rates up to 5-6% in 2025.
