Page 93 - RusRPTFeb21

with Moscow the key focus for growth). Growth of the high-income customer base (which essentially means making better use of data to cross-sell more effectively, particularly to payroll customers). Increasing digital banking uptake and usage.
8.2 ​Central Bank policy rate
At its meeting (18 December), the central bank decided to keep the key interest rate at 4.25%. ​The key interest rate has now remained the same since July last year. In its instructions, the central bank did not completely rule out a possible rate cut at subsequent interest rate meetings.
Annual inflation was faster than the central bank's October forecast (3.9–4.2%) at the end of last year. Consumer prices rose 4.4% in November and, according to Rosstat's preliminary data, rose to 4.9% in December. Inflation has been exacerbated by rising food prices ( ​BOFIT Weekly 51/2020​) and higher inflation expectations of households and businesses. The weakening of the ruble since last summer has also raised prices. At the end of 2020, the ruble remained 6% lower against the US dollar and 15% against the euro compared to the beginning of June, despite the strengthening of the ruble towards the end of the year as oil prices rose. The ruble strengthened against the dollar by 9% from the beginning of November to the end of the year and against the euro by 2%. This week, one dollar got 74 rubles and one euro 91 rubles.
The central bank estimates annual inflation to be 3.5–4% at the end of 2021. After that, it expects inflation to remain close to four%. The central bank's inflation target is 4%.
93 ​RUSSIA Country Report​ February 2021 ​ ​www.intellinews.com