The entity led by Elvira Nabiullina stated it would maintain financing conditions “as tight as necessary” to return inflation to the 4% target by 2026.
In this regard, future monetary policy decisions will be conditioned by the progress in combating price hikes and future expectations of their evolution.
The Bank of Russia also forecasted that inflation would decrease this year to a range between 6% and 7%, eventually reaching 4% by 2026, where it will stabilize.
“Pro-inflationary risks continue to prevail […] in the medium term. The main risks are associated with a prolonged upward deviation of the Russian economy from a balanced growth trajectory and high inflation expectations, as well as the deterioration of external trade,” it explained.
“A further decline in global growth and oil futures, if trade disputes intensify, could have inflationary effects through the ruble exchange rate. Geopolitical tensions remain a significant uncertainty factor. Disinflationary risks imply a more significant slowdown in domestic demand,” it added.
