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CBR Open to Rate Hikes at Upcoming Meetings

RUSSIA
Highlights from the CBR policy statement:
  • The medium-term balance of inflation risks has tilted even more to the upside.
  • Economic activity is rising faster than the Bank of Russia’s April forecast assumed.
  • Accelerating fiscal spending, deteriorating terms of foreign trade and the situation in the labour market remain pro-inflationary risk drivers. The overall balance of inflation risks has tilted even more to the upside.
  • In the context of gradually rising inflationary pressures, the Bank of Russia holds open the prospect of increasing the key rate at its next meetings to stabilise inflation close to 4% in 2024 and further on.

See the full policy statement here: https://www.cbr.ru/eng/press/pr/?file=09062023_133...

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