Vaccinations, Support Expectations Promoting Price Hike on Market

Vaccination of the population and expectations of further budgetary support measures in certain countries promote the prices increase in financial and commodity markets, the Bank of Russia says on Friday, as reported by TASS.

“Accelerated vaccination rates, as well as expectations of additional fiscal support measures in certain countries, contribute to the growth of prices in financial and commodity markets,” the Central Bank says.

At the same time, “monetary conditions remain accommodative and have not changed substantially since the previous meeting of the Bank of Russia Board of Directors,” the regulator noted. Yields of federal loan (OFZ) bonds “grew somewhat amid rising inflation expectations, climbing long-term interest rates in global financial markets, and remaining geopolitical tensions,” the Central Bank added.

The Bank of Russia made a decision at its Board meeting earlier today to keep the key rate at 4.25% per annum. The next meeting for the key rate review is scheduled to March 19.