On 27 October 2023, the Central Bank of Russia (CBR) increased its key interest rate from 13% to 15% to combat rising inflation in the country. Increasing domestic demand is exceeding the capacity to produce goods and services, leading to elevated inflation expectations. The high pace of lending growth and slower-than-expected fiscal stimulus reduction in the medium term necessitate additional monetary tightening to bring inflation back to the 4% target by 2024. This will lead to a sustained period of tight monetary conditions.
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