Summary of the Key Rate Discussion released
The publication covers the main aspects of the discussion about the economic situation and inflation, monetary and external conditions, and alternatives to the key rate decision.
The discussants agreed that all factors noted during the March meeting as the ones that would lead to a higher key rate had materialised. At the July meeting, the participants focused on the scale of the key rate increase and the signal about future decisions.
Following the discussion, the meeting decided to raise the key rate to 18.00% per annum. At the upcoming meetings, the Bank of Russia will assess whether the key rate should be raised further, taking into account future economic developments and the steadiness of inflation deceleration.
The updated medium-term forecast assumes a considerably higher projected path of the key rate for 2024–2026, which is required for stabilising inflation at the target level of around 4%.
Simultaneously, the Bank of Russia has released the Commentary on the Bank of Russia's Medium-term Forecast detailing the parameters of the Bank of Russia's macroeconomic forecast published following the Board of Directors' key rate meeting on 26 July 2024.
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