VTB forecasts key rate to rise to a record 23% in December

The Central Bank (CB) may raise the key rate to 23% per annum following the results of the December meeting of the Board of Directors. This was announced to journalists on Thursday, November 28, by Deputy President - Chairman of the Board of VTB Dmitry Pyanov.

"We predict an increase in December to 23% and keeping it throughout 2025," he said.

The man also compared this rate to a "storm in the interest rate market".

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Earlier, on November 19, Central Bank head Elvira Nabiullina said that if Russia does not face additional economic shocks, the regulator will be able to start reducing the key rate as early as 2025. She pointed out that such tactics of the Central Bank will allow to reduce inflation in the country to the level of 4.5-5% in 2025, and then stabilize this indicator at about 4%.

The Central Bank's Board of Directors raised the key rate to 21% on October 25. Nabiullina said that during the meeting three options were considered: to raise the rate to 20%, to 21% and higher. She specified that the condition of maintaining the level of the rate was not considered. Prior to that, the key rate was 19%.