Rising inflation limits the scope to easing monetary policy

At its meetings on September 11 and October 23, the Bank of Russia left its key rate unchanged at 14.00% per annum. The cycle of monetary policy easing has been suspended. The main factor behind this pause was the acceleration of inflation, which caused the rate of price growth to deviate significantly upward from the Central Bank of the Russian Federation’s medium-term forecast; bringing inflation back to target will require maintaining tighter monetary conditions for a longer period.