The Bank of Russia kept its policy rate at 14% per annum, leaving it unchanged for the second consecutive meeting after the previous month. Against a backdrop of growing inflation concerns, the increase in energy prices may have been a contributing factor.
The Bank of Russia held a monetary policy meeting on the 23rd and left its policy rate unchanged at 14% per annum. The bank had cut rates for 10 consecutive meetings through July, but left them unchanged this time, following the previous month.
The seasonally adjusted inflation rate from July to September averaged 8.0% on an annualized basis, substantially above the 4.8% recorded in the previous quarter. The increase in energy prices is believed to have been affected by Ukrainian attacks on refineries.
The statement said that inflation risks would exceed deflation risks over the medium term. Under the base scenario for current monetary policy, the policy rate is projected to average 12.5–13.5% in 2027, while annual inflation is expected to settle at the 4% target level.