22 Oct 2021 14:14

Bank of Russia chooses non-standard rate hike step of 75 bps to 7.50%

MOSCOW. Oct 22 (Interfax) - The board of directors of the Central Bank of Russia decided to hike the key rate 75 basis points to 7.50% at its meeting on Friday, choosing a non-standard increment that virtually no one on the market had expected.

The overwhelming majority of analysts surveyed by Interfax expected the key rate to rise 50 bps to 7.25%, while some experts allowed for an increment of 25 bps to 7.0%.

Of the 24 financial market participants surveyed by the ACI Russia association, 50% believed the regulator would increase the rate 50 bps, 46% - 25 bps, while 4% expected the rate to be preserved at the current level of 6.75%.

A step of 75 bps was mentioned in a number of forecasts, but rather as a hypothetical possibility.

The CBR board's decision did not correspond to analysts' expectations in September either, when the regulator elected a short step of 25 bps to 6.75%.