Russian business leader: No interest rate hike expected

MOSCOW

Aleksandr Shohin, president of the Russian Union of Industrialists and Entrepreneurs (RSPP), said Tuesday he does not expect the Russian Central Bank to raise its policy interest rate during its February meeting.

Shohin noted that the current policy rate is already elevated.

“The economy is struggling to adapt to this situation,” Shohin told journalists in Moscow. “It will take time to develop support mechanisms. Clearly, I don’t foresee an interest rate hike being on the agenda.”

The Bank of Russia raised its policy rate by 200 basis points to 21% in October 2024, marking an all-time high, amid rising inflation.

Annual inflation in Russia climbed to 9.52% in December.

The bank’s next meeting is scheduled Feb. 14.

*Written by Gokhan Ergocun in Istanbul