Page 100 - RusRPTFeb23

September (chart).
In September, the CBR resolved to cut the key interest rate by 50 basis points (bp) to the pre-invasion 7.5%, making a sixth consecutive cut, but slowing the pace of rate cutting and guiding for an end of the monetary easing cycle.
The analysts expected the CBR to remain cautious in October in the face of many instability factors: “partial” military mobilisation, sharp escalation of the war in Ukraine, introduction of martial law and tapping into the National Welfare Fund (NWF) to finance the budget deficit.
Indeed, the CBR believes that pro-inflationary effects could be more pronounced than forecasted due to partial mobilisation and resulting workforce effects, as well as high inflation expectations.
100 RUSSIA Country Report February 2023 www.intellinews.com