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Nabiullina Says CBR Ready to Hike Again Unless Inflation Subsides

RUSSIA

The period of maintaining high rates should be long, Governor Nabiullina said at the post meeting press conference as per Bloomberg, adding that the central bank stands ready to hike again unless CPI subsides.

  • Inflation is caused by internal imbalance of supply and demand, demand is growing while supply is limited, she said.
  • The central bank may start to cut rates when it sees a steady decline in inflation, which could happen in 2024.
  • She reiterated that the Bank of Russia raised its estimate of the neutral key rate to 6-7%

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