The Central Bank named the condition for achieving the inflation target
Quick Look
To reduce inflation in Russia to 4 percent, an average annual key rate in the range of 10.5-12.5 percent is required, said Deputy Chairman of the Central Bank Alexei Zabotkin.
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Why It Matters
The Central Bank predicts a return to the neutral key rate no earlier than 2029.
To achieve the inflation target in Russia, a lower key rate than now is needed. The condition for reducing the growth rate of consumer prices to the required 4 percent was named by Deputy Chairman of the Central Bank (CB) Alexei Zabotkin. His words are quoted by TASS.
To achieve the above goal, he explained, an average annual key rate is needed in the range from 10.5 to 12.5 percent per annum. According to the regulator’s forecast, it will be possible to return to the neutral key value (7.5-8.5 percent) no earlier than 2029.
By this time, the Central Bank expects, revenues to the state treasury should fully cover expenses. Until this time, the regulator believes, budget expenditures will exceed revenues.
What to Watch
AI outlook — possibilities, not facts
Return to the neutral key rate of 7.5-8.5 percent no earlier than 2029
Likely · Within months
Open Questions
- What will be the exact trajectory of the rate cut?
