31 May 2023 16:21

Russian Central Bank confirms relevance of key rate signal ahead of 'week of silence': Situation in economy nearly the same

MOSCOW. May 31 (Interfax) - The current situation in Russia's economy generally corresponds to the picture observed ahead of the meeting of the board of directors of the Central Bank of Russia (CBR) in April, and the signal for the key rate remains relevant, Central Bank Deputy Governor Alexei Zabotkin said.

"Given gradually rising inflationary pressures, the Bank of Russia's forthcoming Board meetings will consider the necessity of key rate increase to stabilize inflation close to 4% in 2024 and further on," the CBR said in its latest signal.

"One could compare the current picture of the main economic indicators that we see with the picture that existed ahead of the previous meeting, based on which the decision was taken in April and the signal was given in April. In short, the situation overall currently appears about the same as it did ahead of April 28 [when the last board meeting was held]," Zabotkin said on Wednesday at a press conference.

"The signal that the board of directors gave in April is probably still fully substantiated, and we will evaluate the advisability of hiking the rate on June 9," Zabotkin noted.

The meeting of the CBR's board of directors on monetary policy is scheduled for June 9, meaning that the regulator has only two days in order to revise its signal if necessary. The so-called "week of silence" ahead of the board meeting begins this Friday.