SOCHI, Russia, Sept 29 (Reuters) – Russia’s central bank could increase its main interest rate or keep it at the current level of 13.0% during the rest of 2023, governor Elvira Nabiullina said on Friday.
“The average rate forecast for this year implies both keeping the rate unchanged and raising it,” she told a banking forum in the Black Sea resort of Sochi.Nabiullina also said rate decisions would depend on the situation in Russia’s economy. The rate may be lowered when inflation reaches the target level of 4%, she said.Russia’s central bank raised its key interest rate by 100 basis points to 13% on Sept. 15, jacking up the cost of borrowing at its third meeting in succession in response to a weaker rouble and other persistent inflationary pressures.
At an emergency meeting in August, the regulator sharply raised the rate by 350 basis points to 12%.
The central bank has adjusted its year-end forecast for inflation to 6.0-7.0% from 5.0-6.5%. Annual inflation was running at 5.33% as of Sept. 11, above the 4% target.
The bank’s next rate-setting meeting is scheduled for Oct. 27.
Reporting by Elena Fabrichnaya Writing by Maxim Rodionov Editing by Gareth Jones Editing by Gareth Jones