for example, to raise the key rate by 1 percentage iraq telegram data point, so as not to disappoint expectations too much and not to leave ourselves “offend” — both ours and yours?
This is definitely not the logic we rely on. We choose a rate level that is most consistent with the tightness of monetary conditions requir for disinflation and reaching the target, but at the same time does not lead to an overshoot, i.e. over-tightening. So that later there is no ne to sharply ruce the rate, creating unnecessary volatility in the economy with negative consequences that could have been avoid if the tightness of monetary conditions had been proportionate to the task of returning inflation to the target.
I would like to emphasize that analysts
have very correctly interpret our explanations over the past six months that a higher inflation trajectory requires a higher interest rate trajectory. But in fact, this is exactly what has happen now, that is, deposit and loan rates in November-December rose much higher than the 21% rate suggest. This has had a strong impact on lending activity. The Bank of Russia’s Board of Directors has decid that the achiev monetary the bairesdev app development strictness may be sufficient to resume the disinflation process and return inflation to the target. This is still a preliminary judgment, we will closely monitor further data.
What is the final conclusion market
participants and analysts in December should not have paid much attention to current inflation and the increase in pro-inflationary america email pressure, including the weakening of the ruble, but should have focus more on some indicators that indicate how the situation will develop in the future?