The Central Financial institution of Russia right this moment raised the coverage fee from 19% to 21%.
That’s assuming (1) adaptive expectations, and (2) the inflation fee is precisely measured. (h/t Anders Aslund) One may suspect that y/y inflation via September was really larger than the reported 8.6%, however who is aware of. (The Central Financial institution has an October estimate of anticipated inflation of 13.4%, through TradingEconomics – I’ll take their phrase for it, as I can’t learn Russian so I don’t know the traits of this estimate.)
Curiously, whereas Russian GDP is anticipated to hit 3.5% development this yr, BOFIT’s forecast is for 1% in 2025 and 2026 (IMF October WEO signifies 3.6% for 2024, 1.3% for 2025). These forecasts predate the rise in coverage charges right this moment (though presumably they had been to some extent anticipated).
