Russian Central Bank head says December key interest rate hike possible but ‘not predetermined’

Elvira Nabiullina, the head of Russia’s Central Bank, said Wednesday that the regulator is considering raising its key interest rate in December, though she added that the decision is “not predetermined.”

“We have indicated that the Central Bank is open to the possibility of raising the rate, but I want to emphasize that this is not predetermined. Yes, there is a new pro-inflationary factor, the exchange rate, and price growth remains high, but we are already observing, according to the latest data, a credit slowdown, including corporate loans,” Nabiullina said at VTB Bank’s annual investment forum in Moscow.

The Central Bank’s last rate hike in October helped “prevent [Russia] from entering an inflationary spiral,” Nabiullina noted.

At the same time, Nabiullina said that inflation in Russia has yet to show signs of decline. “Unfortunately, inflation this year will be higher than next year. But the path to our target will take all of next year and may extend into 2026,” she said.