MOSCOW—Russia will need to raise interest rates further to combat stubbornly high inflation that overshot forecasts and shows little signs of slowing, a Reuters poll showed on Thursday. Russia’s export-focused economy has already recovered to pre-pandemic levels and is on track to grow further. But the recovery, together with global inflation and a weak rouble, is pushing consumer prices higher, denting living standards. The consensus forecast of 22 analysts polled in late September suggested the central bank will raise its key rate for the sixth time this year at the Oct. 22 board meeting to 7 percent. Some analysts said the central bank could raise the rate to 7.25 percent, addressing inflation that accelerated to 7.3 percent as of late September, flying at levels last seen more than five years ago and above the 4 percent target. “It appears, that Russia is now dealing with the consequences of the additional …
Russia Needs to Raise Rates Further as Inflation at Highest Since 2016: Poll of Analysts
October 1, 2021
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