The Central Bank raised the key rate by 0.25 percentage points – up to 6.75 percent per annum, according to a statement on the regulator’s website. The increase was the fifth since March, and similar decisions were made at all subsequent meetings.

The Central Bank still believes that the Russian economy is “returning to the trajectory of balanced growth”, having reached the pre-pandemic level. Meanwhile, the contribution to inflation from stable factors remains substantial, due to which “the balance of risks for inflation is shifted towards pro-inflationary ones”. “The monetary policy pursued by the Bank of Russia is aimed at limiting this risk and bringing inflation back to 4 percent,” the statement said.

The current value was the highest since November 2019, when the key rate was lowered to 6.5 percent as part of the central bank’s planned policy to ease monetary conditions. Subsequently, the regulator continued to reduce the main benchmark for the economy under the influence of the crisis caused by the COVID-19 pandemic. From July 2020 to March 2021, the key rate was at the lowest level in Russian history – 4.25 percent per annum.