Russian Central Bank will consider entire set of factors at Dec meeting; too soon to discuss possible solutions - Deputy Governor Zabotkin

MOSCOW. Dec 3 (Interfax) - The Central Bank of Russia will consider the entire set of factors at the meeting of the regulator's board of directors on the key rate in December, and it is too soon to discuss possible solutions, Central Bank Deputy Governor Alexei Zabotkin told journalists.

"We will consider the entire set of factors , and it is too soon to discuss the set of options," Zabotkin said in response to whether the probability of hiking the key rate in December has increased, and whether the option to retain the rate would be on the table.

The next meeting of the Central Bank's board of directors on monetary policy is on December 20. It will not be a key meeting.

The next key meeting of the board of directors will be on February 14, 2025, when the CBR will update its medium-term macroeconomic forecast, Zabotkin said.

He declined to comment on some analysts' predictions suggesting a hike in the key rate to 25% in December. "It is premature to discuss the range of options that will be considered at the December 20 meeting," Zabotkin said when asked whether the regulator might consider increasing the rate by more than 2 percentage points.

The CBR considers various factors when making a decision on the key rate, including the dynamics of inflation expectations. Opinions among participants in the monetary policy decision-making process vary regarding whether the inflation expectations of the public or businesses are more important, Zabotkin said.

"In my personal opinion, the most significant factor for a particular decision [on the rate] is whichever indicator deviates most significantly from our projections at that time," he said.

The weakening of the ruble currently being observed is an additional pro-inflationary factor.

"We will find out how it [the ruble's weakening] will have an effect [on inflation expectations] from a survey by the Public Opinion Foundation, which we will receive before the December 20 board meeting. Overall, of course, it is an additional pro-inflationary factor, both in terms of potential influence on expectations and in terms of cost channels," Zabotkin said.

In raising the key rate 200 basis points to 21% in October, the CBR gave a tough signal that the regulator holds open the possibility of raising the rate at its next meeting.

The Central Bank considered raising the rate to 20%, 21% and 22% in October.