Both nominal and real interest rates continued to grow, according to recent data. Moreover, real interest rates hit new record highs, while households’ and businesses’ inflation expectations increased less notably.
The demand for loans stayed high, which is evidence that monetary conditions should remain tight for a longer period. The annual growth rates of the monetary aggregates still exceeded the 2017–2019 levels.
More details are available in the new issue of the Bank of Russia’s information and analytical commentary "Monetary Conditions and Monetary Policy Transmission Mechanism."
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