27 Oct 2023 14:48

CBR removes hawkish signal from statement after sharp rate hike

MOSCOW. Oct 27 (Interfax) - The Bank of Russia, having raised the key rate by 200 basis points rather than 100 basis points at once to 15%, a move unexpected by the market, removed the hawkish signal about the future direction of monetary policy from its statement on the results board meeting.

In September, having raised the key rate by 100 bps to 13%, the Central Bank returned with a hawkish signal about future actions in its statement on the results of the regulator's board meeting. "The Bank of Russia will assess the advisability of further key rate hikes at its upcoming meetings," the statement said. This time, having raised the rate immediately by 200 at once, the Central Bank again removed the directional signal from the statement, leaving the wording neutral.

"In its further key rate decision-making, the Bank of Russia will take into account actual and expected inflation dynamics relative to the target and economic developments over the forecast horizon, as well as the risks posed by domestic and external conditions and the reaction of financial markets," the CBR said in a statement on October 27.