“On 28 October 2022, the Bank of Russia Board of Directors decided to keep the key rate at 7.50% per annum. Current growth rates of consumer prices as a whole remain low, contributing to a further slowdown in annual inflation,” the bank said in a statement.

“The updated forecast assumes inflation for the end of 2022 to total 12.0–13.0% and takes into account the preponed indexation of utility prices among other factors. The Bank of Russia assesses that the partial mobilization will serve as a deterrent to consumer demand and inflation over the horizon of coming months,” the bank added.

At its last meeting in September, the bank cut the rate by 50 basis points to 7.5% from 8%. (ILKHA)