22 May 2023 15:58

Russian Central Bank on June 9 will assess advisability of hiking key rate; decision not predetermined

MOSCOW. May 22 (Interfax) - The board of directors of the Central Bank of Russia (CBR), during the regulator's meeting on June 9, will assess the advisability of hiking the key rate, though the decision is not predetermined, and the balance of risks for inflation will be analyzed, Kirill Tremasov, director of the CBR's monetary policy department, said in a statement.

"Starting with the February meeting, we have been saying that we would evaluate the advisability of hiking the key rate. This is our rhetoric, and this is our signal, because we see a prevalence of pro-inflationary risks; risks that are associated with both the labor market and the effect of external factors, and with the budgetary policy," Tremasov said at a press conference as part of public consultations on the monetary policy review.

"The third meeting has already taken place since February, and there will be another one on June 9. Yes, we will assess the advisability of hiking the key rate at this meeting, though this is not a predetermined decision. It will be important for us to assess the balance of risks. We will try to understand how the balance of risks has shifted over time. The matter of raising the key rate could be adopted if we actually see that the balance of risks has started shifting strongly toward pro-inflationary risks," Tremasov noted.

The CBR retained the key rate at 7.5% per annum in April, which was the fifth pause after a cycle of six consecutive cuts in the key rate that had begun from the "emergency" rate of 20% pa set in February 2022.