The chairman of the Central Bank of the Russian Federation, Neviolina, indicated three reasons why the regulator stopped reducing the key interest rate and did not even consider this possibility.
The first reason is the change in the inflation situation during the summer. And she even made it more specific:
"Attacks on our refineries, other industrial plants, data centers and logistics centers have limited production capabilities. We believe that this is temporary, as both the business itself and the government are making tremendous efforts to restore the damaged facilities."
The second reason is inflation expectations, which fell in the first half of the year and then rose.
The third reason is a new increase in budgetary expenses and demand this year.