Template-type: ReDIF-Article 1.0
Author-Name: Bozhechkova Alexandra
Author-Workplace-Name: Gaidar Institute for Economic Policy; Russian Presidential Academy of National Economy and Public Administration
Author-Name: Trunin Pavel
Author-Workplace-Name: Gaidar Institute for Economic Policy; Russian Presidential Academy of National Economy and Public Administration
Title: Bank of Russia Tightens Its Monetary Policy in Response to Accelerated Inflation
Title: Банк России ужесточает денежно-кредитную политику из-за ускорения инфляции 
Abstract: At its Board of Directors meeting in June, the Bank of Russia raised the key rate for the third time since the beginning of the year, by 0.5 p.p. to 5.5% per annum. This decision was caused by an accelerated inflation triggered by reviving demand as the containment measures were being lifted, alongside the ongoing super-loose fiscal and monetary policies in the majority of countries, rising prices in world commodity markets, and increasing inflationary expectations. As seen by the results of May 2021, inflation in annual terms reached 6% and, according to our estimates, its year-end index year will be at least 5.3%, which points to a high probability of continuing monetary policy tightening.
Keywords: inflation, monetary policy, key rate, capital outflow, Bank of Russia
Classification-JEL: E31, E52, F31
Journal: Russian Economic Developments
Year: 2021
Issue: 6
Month: June
Pages: 8-11
File-URL: http://www.iep.ru/files/RePEc/gai/recdev/r2160.pdf
File-Format: Application/pdf
Handle: RePEc:gai:recdev:r2160