The Central Bank left the rate of 14% and raised the inflation forecast

The Central Bank kept the key rate at 14% and raised the inflation forecast to 7.1-7.6%. Head of the Directorate for Work with Fixed Income Instruments of Alfa-Capital Evgeny Zhornist told RIAMO about this.

The fact that the central bank will not cut the key rate was clear for a long time. But, according to the expert, the regulator acknowledged that inflationary pressure from the supply side was more stable than expectations.

Previously, the regulator expected the temporary shocks to gradually ease. But now he himself notes that stable price growth remains at the level of 5-6%, taking into account seasonal fluctuations. And in the third quarter, the current seasonally adjusted price growth was 8% against 4.8% in the second quarter. Also accelerated from 4.5% to core inflation accelerated to 6.2%.

Under these conditions, the inflation forecast for the end of the year was expected to increase. Now it is 7.1-7.6%, although it used to be 6-7%.