The Russian Central Bank prepares to raise interest rates against inflation

Annual inflation in Russia rose to 8.13 percent in October, the highest level since February 2016. In her speech at the Duma, the lower house of the Russian parliament, Elvira Nabiullina, President of the Russian Central Bank, made an assessment of the inflation rates that continue to increase in the country.

Nabiullina stated that they had to prevent the increase in inflation and said, “Therefore, we will consider further increases in the interest rate in the upcoming meetings. In order not to lose people's trust, we must return inflation to the target level.” said.

"INFLATION IS A REAL CIRCUMSTANCE MAKING PEOPLE MORE PURPOSE"

Pointing out that high inflation harms the welfare of the society, Nabiullina said, “Inflation is a real scourge that makes people poorer. The high inflation expectations that really worry us, and the way it affects financial behavior, show how afraid people are of inflation.” expressed his views.

"WE WILL EVALUATE ADDITIONAL INCREASES IN THE INTEREST RATE"

Reminding that they increased the interest rate to 7.5 percent in their last meeting, Nabiullina said, “The Central Bank of Russia should definitely intervene so that inflation does not rise. Therefore, we will consider further increases in the interest rate at future meetings. In order not to lose people's trust, we must return inflation to the target level.” used the phrases.

Emphasizing that the interest rate in the country will not return to the level of 5 to 6 percent for a long time, Nabiullina said, “The return to these levels will not be earlier than the middle of 2023. This is a necessary condition for inflation to return to the 4 percent target and to keep it at this level.” made its assessment.