Russian Central Bank repeats signal on monetary policy allowing for hiking key rate at next meeting

MOSCOW. Oct 2 (Interfax) - The Central Bank of Russia has repeated its signal regarding the direction of monetary policy going forward, namely allowing for possibly hiking the key rate during the next meeting of the regulator's board of directors.

"The board of directors allows for the possibility of hiking the key rate at the next meeting," Central Bank Deputy Governor Alexei Zabotkin said during the State Duma's working group meeting.

"The fact that inflation is still above 4% shows that we should have acted more decisively and tightened monetary policy earlier and faster," Zabotkin said.

Zabotkin said that there is a lag of three to six quarters in the economy and on inflation following decisions on monetary policy.

"The decisions taken on the key rate last autumn, in the first quarter of the year and the second quarter of the year, are affecting inflation even now," Zabotkin said.

The CBR has hiked the key rate twice in 2024, namely by 200 basis points to 18% per annum in July and by 100 bps to 19% pa in September.