ALEXEI VEDEV ON THE CENTRAL BANK OF RUSSIA’S DECISION ON THE KEY RATE

The regulator will keep the key rate at the same level of 12% for three reasons. First, unlike the budget policy of foreign exchange regulation, which influences promptly the demand and supply pattern, an increase in the rate has a delayed effect. The effects of the Central Bank’s decision of August 15 have not materialized in full, yet. Second, GDP growth in Q4 and next year is currently the main issue within the scope of the budget process. The government is interested in keeping the economic activity going, Alexei Vedev notes.