Regulatory Announcements

The Bank of Russia Keeps the Key Rate at 4.25% p.a.

On 12 February 2021, the Bank of Russia Board of Directors decided to keep the key rate at 4.25% per annum. In December and January, prices continued to grow at an elevated pace. Demand is recovering faster and more sustainably than expected. At the same time, supply-side restrictions are still in place and continue to exert upward pressure on prices. Inflation expectations of households and businesses remain elevated. Accelerated vaccination rates, as well as expectations of additional fiscal support measures in certain countries, contribute to the growth of prices in financial and commodity markets. In this context, disinflationary risks no longer prevail over a one-year horizon, and the Bank of Russia has increased its 2021 inflation forecast to 3.7–4.2%. Moving forward, given the current monetary policy stance, annual inflation will stay close to 4%.