The Central Bank raised its key rate to 6.5%. This is the steepest increase since December 2014

The Central Bank raised the key rate by one percentage point at once – up to 6.5%. About it it says on the website of the Central Bank.

This is the steepest increase since December 2014.

The decision to raise the key rate, according to the regulator, “is aimed at limiting this risk and bringing inflation back to 4%.” According to the Central Bank, in the second quarter of this year, the Russian economy reached a pre-pandemic level.

According to the forecast of the Central Bank, the annual inflation in 2021 will be 5.7-6.2%. Next year it will drop to 4.0-4.5%, and after that it will be at 4%, adds the Central Bank.

This June, the Central Bank of Russia boosted key rate by 0.5 percentage points, up to 5.5% per annum.