Russian Central Bank raises interest rates 100 points
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| Russian Central Bank Raises Interest Rates |
The Russian Central Bank raised the key interest rate by 100 points, bringing interest rates in Russia to 16%. This increase met the expectations of analysts in global financial markets.
Russian Central Bank continues to raise interest rates in an important step to control inflation in the prices of goods and services in Russia, which has continued to rise since the beginning of the Russian-Ukrainian war.
Russian economy & GDP growth
The Russian Central Bank expected that GDP growth in 2023 would exceed its expectations issued in October and record levels higher than 3%.
The Russian Central Bank indicated that some sectors in the credit market have slowed even though overall lending growth rates are still high.
Regarding the inflation level, the bank confirmed that inflationary pressures are still high and that the annual inflation rate for the current year is expected to be close to the upper limit of the range of expectations that ranges between 7% to 7.5%.
In the same context, the Bank of Russia expects to maintain the tight "monetary policy" within the "Russian economy" for a long period, and the bank expects the annual inflation rate to slow to a level ranging between 4% to 4.5% in 2024.