Following the meeting of the Board of Directors, the Central Bank of Russia revised its assessment of the neutral rate from 5-6% to 5.5-6.5%, the head of the Central Bank Elvira Nabiullina said during a press conference, Report informs via Russian media.
“The updated forecast takes into account the revision of our estimate of the neutral rate - up by 0.5 percentage points, to 1.5-2.5% in real terms or 5.5-6.5% in nominal terms,” she said.
According to her, today's rate hike may be enough, but the scenario of further tightening of monetary policy is more likely.
On July 21, the Central Bank raised the key rate to 8.5% for the first time since September 2022. The Bank of Russia admits the possibility of a further increase in the rate at the next meetings.