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CBR Keeps Key Policy Rate Unchanged, as Expected

RUSSIA

Central Bank of Russia keep the key policy rate at 7.50%, alongside expectations.


Full bank statement here: https://www.cbr.ru/eng/press/pr/?file=28102022_133...


Statement highlights:

  • Updated forecasts assume inflation for the end of the year at 12-13% (up from the 11-13% view previously)
  • Partial mobilisation will serve as a deterrent to demand and inflation in the coming months, but should be pro-inflationary eventually given the impact on the supply-side.
  • Annual inflation seen dropping to 5.0-7.0% next year, returning to the 4.0% target in 2024.

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