“Despite the dynamics and high volatility of the exchange rate this year, the financial markets functioned as usual, there were no liquidity problems, so we did not see then and do not see now any risks to financial stability. A strong movement of the exchange rate “On its own it did not represent such a risk, but it led to a further increase in inflation and inflation expectations. To combat these factors we raised the interest rate,” Nabiullina said.
Earlier on Friday, the Bank of Russia raised the key interest rate by one percentage point: from 12 to 13% per year. Exactly a month ago, at an unscheduled meeting, the Central Bank sharply increased the key exchange rate from 8.5 to 12% per annum due to increasing inflationary pressure in the economy (including due to the rapid weakening of the exchange rate of the ruble, which exceeded 100 rubles). per dollar), in July the rate increased from 7.5 to 8.5%. Before this, the figure had not changed for almost a year.
Additionally, on September 15, the Bank of Russia raised its inflation forecast for 2023 from 5-6.5% to 6-7%. The Central Bank still intends to return inflation to the 4% target by the end of 2024.
