Economist Denis Raksha explained the sharp increase in the key rate by the Central Bank to 6.5 percent per annum. His quotes National News Service (NSN).
According to the expert, the Central Bank has good reasons and it is “reasonably balanced” in its decisions.
“Good reason is the rate of growth of inflation, which in annual terms approached six percent. It is clear that they can fluctuate from month to month, and by the end of the year it will not be six percent, but less. But, nevertheless, with the target, which the Central Bank did not change and which is still four percent, this is still an excess. Therefore, the Central Bank is concerned about the rate of inflation and is trying to prevent it, ”Raksha said.
The Central Bank reported earlier about a sharp increase in the key rate by one percentage point – up to 6.5 percent per annum. The regulator explained the decision by the situation in the Russian economy, which reached a pre-pandemic level in the second quarter of 2021. Soon, the head of the Central Bank Elvira Nabiullina suggested that the July rate hike could be the last. Nabiullina also put on a brooch in the shape of a cloud, from which it is raining, to the press conference following the meeting of the board of directors.
source https://pledgetimes.com/the-economist-explained-the-sharp-increase-in-the-key-rate-of-the-central-bank/
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