Russia needs months to return to low interest rates

The Russian Central Bank is in no hurry to reduce the interest rate after five consecutive increases, inflation is still at a high level.

Source: Reuters

Details: In response to persistent inflation, the Russian Central Bank hiked its key interest rate for the fifth time in a row, to 16%, earlier in December. It also signalled that the cycle of tightening was almost complete.

Quote: "We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month," said Nabiullina, the chair of the Russian Central Bank.

The next meeting of the Board of the National Bank for setting the interest rate will be held on 16 February.

Background: At its meeting on 15 December, the Board of Directors of the Central Bank of Russia raised the key rate to 16%. This is the fifth increase in half a year.

Against the background of shortages in several regions of Russia, egg prices rose by about 42% and provoked a reaction from Russian President Vladimir Putin.

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