The Bank of Russia could potentially increase the benchmark interest rate to 23% this December.
The Board of Directors at the Bank of Russia is predicted to elevate the key rate from its current level of 21% to 23% annually during their assembly on December 20.
This viewpoint is shared by most contributors to the RBC consensus projection – financial analysts representing prominent Russian banks and investment organizations.
An augmentation of 200 basis points, culminating in a 23% rate, is anticipated by 23 of the 30 specialists surveyed.
Conversely, four other specialists propose the Central Bank might embrace a stricter strategy and immediately boost the rate to 25% per year in December. One specialist foresees a rate adjustment of 300 bps to 24%, whereas two additional specialists don’t discount the possibility of maintaining it at the current 21%.
Should the specialists’ anticipations for monetary policy stiffening prove accurate, the December progression of increases will mark the fourth consecutive one. The Central Bank’s rate has already reached an unparalleled summit of 21%, but this apex might potentially be surpassed.
