MOSCOW, August 15. /TASS/. At an extraordinary meeting of the Board of Directors on Tuesday, the Bank of Russia decided to raise the key interest rate to 12% from 8.5% per year.
“The Board of Directors of the Bank of Russia has decided to increase the policy rate by 350 basis points to 12.00% per annum from August 15, 2023. The decision aims to limit price stability risks,” the statement said.
In the future, the Bank of Russia will use Key interest rates take into account the actual and expected inflation dynamics relative to the target and the economic transformation processes, as well as the risks posed by domestic and external conditions and the reaction of the financial markets arise . According to the Bank of Russia's forecast, given the monetary policy stance, annual inflation will return to 4% in 2024,” the regulator said.
The Bank of Russia is the central bank of the Russian Federation. It was founded in 1990 and is responsible for monetary policy, banking supervision, financial market regulation and financial stability in the country. The Bank of Russia has the sole right to issue banknotes and coins in Russia. It is also responsible for managing the country's international currency reserves and gold holdings. The Bank of Russia is based in Moscow and is headed by a governor appointed by the President of the Russian Federation. The Bank of Russia is independent from the government and governed only by the law.