In October, inflation expectations of Russians resumed growth after a pause. This is evidenced by a report from the Central Bank of Russia.
Thus, in October, inflation expectations increased to 13.4% compared to 12.5% in September.
Inflation expectations are one of the important factors that the Central Bank takes into account when making a decision on the key rate, Interfax notes .
VTB CEO Andrey Kostin admits that the Bank of Russia may raise the key rate to 21% by the end of 2024 from the current 19%. “Anything is possible. Women are leading the process. There is little that is impossible,” the banker explained. He also noted that in the first half of 2025, the regulator will continue to pursue a tight monetary policy. However, in the second half of next year, the Central Bank may begin a gradual easing, reducing the rate against the backdrop of slowing inflation.
Earlier, the analyst estimated the probability of raising the key rate to 25%.