In the statement made by the Central Bank of Russia, it was noted that inflation expectations in the country continued to increase.

Pointing out that the domestic demand exceeded the production capacity, it was stated that this situation increased the inflation pressure in the economy.

Emphasizing that the target of reducing inflation to 4 percent in 2024 is still valid, the statement said, “The Central Bank of Russia has decided to raise the policy rate to 8.5 percent.” it was said.

Market expectations were that the Central Bank of Russia would raise the policy rate to 8 to 8.5 percent.

The economy is expected to grow by 1.5 to 2.5 percent this year, the statement said.

After the Central Bank of Russia increased the policy interest rate from 9.5 percent to 20 percent in February 2022 due to the sanctions of the Western countries, it entered the interest rate cut process and at the meeting it held in September 2022, it lowered the interest rate to 7.5 percent.

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