17 Dec 2021 13:53

Central Bank sends out same hawkish policy signal after hiking rate 100 bps

MOSCOW. Dec 17 (Interfax) - The Central Bank of Russia sent out the same hawkish policy signal after hiking its key rate 100 basis points to 8.5% as it did when it hiked the rate as much as 75 bps in October.

The regulator said in October after putting the rate up to 7.5% that "if the situation develops in line with the baseline forecast, the Bank of Russia holds open the prospect of further key rate rises at its upcoming meetings."

The new signal repeats this: "If the situation develops in line with the baseline forecast, the Bank of Russia holds open the prospect of further key rate increase at its upcoming meetings. Key rate decisions will take into account actual and expected inflation movements relative to the target and economic developments over the forecast horizon, as well as risks posed by domestic and external conditions and the reaction of financial markets," the Central Bank said following its December 17 decision.