As noted in the regulator's message, inflation remains high due to the outstripping growth of demand over supply, the weakening of the ruble and the tense labor market.
In the fourth quarter of 2024, prices increased by 12.1% year-on-year. In January–February 2025, the rate of price growth decreased slightly, but still remains significant. The economy grew by 4.1% in 2024, exceeding forecasts, due to strong domestic demand. Unemployment is at lows, and wage growth is outpacing productivity.
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The Central Bank noted a decrease in lending activity in the retail and corporate sectors. The Bank of Russia expects that tight monetary conditions will create the prerequisites for reducing inflation to the target 4% by 2026.
The regulator's decision was expected, earlier we wrote about experts' forecasts about the prospect of changing the key rate.
