On March 17, 2023, the Central Bank held a scheduled meeting of members of the Board of Directors, during which the issue of the key rate (KR) was decided. As a result, it became known that the regulator has left it at the current level for the fourth time. Thus, the COP will be 7.5% per annum, according to a press release published on the website of the Central Bank.
– Current price growth rates remain moderate, including for sustainable components. Inflationary expectations of the population have significantly decreased, but remain at an elevated level, as are the price expectations of enterprises. The live data points to a continued recovery in business and consumer activity. Accelerated execution of budget expenditures, deterioration in the terms of foreign trade and the state of the labor market continue to form pro-inflationary risks. In general, the balance of risks for inflation has not changed significantly since the previous meeting of the Board of Directors of the Bank of Russia, the text of the Bank of Russia says.
In addition, it is clarified that all subsequent decisions on the discount rate will be made depending on how close the banking sector comes to the inflation target – close to 4% by 2024.
Recall that earlier the regulator had already left the key rate at the level of 7.5% per annum three times: in October and December 2022 and in February 2023. Later, speaking at a press conference following the results of the last meeting, the head of the Central Bank, Elvira Nabiullina, emphasized that the probability of raising the key rate significantly exceeds the probability of its reduction.
However, in general, the forecasts for the CC for 2023 are quite optimistic. For example, our experts expect the key rate to remain within the range of 6.5-8.5%, which is a rather favorable factor for the economy in general and the real estate market in particular.
The message of the Central Bank for the fourth time left the key rate at 7.5% appeared first on the Realty Times.
