Central bank leaves key rate unchanged
Economy
The Central Bank has left the key rate unchanged at 14 per cent per annum, the press service of the Bank reported.
It is noted that after the recession in the first half of the year, inflationary processes and expectations in the economy slightly accelerated against the background of changes in the factors of commodity supply and inflationary demand.
The regulator noted that the current level of the main rate will serve to ensure the necessary monetary conditions for the formation of inflation within the forecast figures by the end of the year.
It is noted that overall inflation since the beginning of the year was formed in a downward trend and in the last quarter accelerated to 9.2 per cent. Among the structural factors of inflation growth it is explained by the acceleration of food prices to 11 per cent, increasing contribution of changes in regulated prices for fruit and vegetable products in the overall inflation.
"Expectations in the economy remain highly sensitive to short-term shocks. Uncertainty remains regarding the duration of global inflationary processes. The level of inflation in the main trading partners and the situation in the current dynamics of exchange rates increase the pressure on the strengthening of the real effective exchange rate of the sum," the Central Bank said.
According to the results of 9 months of this year, GDP increased by 5.8% compared to the same period last year. High rates of economic growth are provided by the growth of consumer spending under the influence of fiscal stimuli, as well as a significant increase in decentralised investments. The dynamics of positive growth of gross demand in the economy remains, which was reflected in the volume of rendered market services by 12.1 per cent compared to the previous year, the volume of cash receipts from trade and paid services by 28 per cent.
At the same time, cross-border money transfers decreased by 33.7 per cent compared with the corresponding period of the previous year due to the effect of high base, but increased by 1.4 times compared with the corresponding period of 2021.
In September, the weighted average interest rates on households' time deposits in the national currency stood at 21.1 percent, and as of October 1, the annual growth in the balance of time deposits stood at 47.1 percent, including the growth in time deposits of individuals at 52.3 percent.
According to the updated forecasts based on the balance of factors increasing and decreasing inflation, at the end of the current year, inflation is expected to form within the forecast corridor.
Inflationary factors, such as seasonal increase in food prices, as well as primary and secondary impact of changes in regulated prices on general inflation, remain.
The regulator noted that the current level of the main rate will serve to ensure the necessary monetary conditions for the formation of inflation within the forecast figures by the end of the year.
It is noted that overall inflation since the beginning of the year was formed in a downward trend and in the last quarter accelerated to 9.2 per cent. Among the structural factors of inflation growth it is explained by the acceleration of food prices to 11 per cent, increasing contribution of changes in regulated prices for fruit and vegetable products in the overall inflation.
"Expectations in the economy remain highly sensitive to short-term shocks. Uncertainty remains regarding the duration of global inflationary processes. The level of inflation in the main trading partners and the situation in the current dynamics of exchange rates increase the pressure on the strengthening of the real effective exchange rate of the sum," the Central Bank said.
According to the results of 9 months of this year, GDP increased by 5.8% compared to the same period last year. High rates of economic growth are provided by the growth of consumer spending under the influence of fiscal stimuli, as well as a significant increase in decentralised investments. The dynamics of positive growth of gross demand in the economy remains, which was reflected in the volume of rendered market services by 12.1 per cent compared to the previous year, the volume of cash receipts from trade and paid services by 28 per cent.
At the same time, cross-border money transfers decreased by 33.7 per cent compared with the corresponding period of the previous year due to the effect of high base, but increased by 1.4 times compared with the corresponding period of 2021.
In September, the weighted average interest rates on households' time deposits in the national currency stood at 21.1 percent, and as of October 1, the annual growth in the balance of time deposits stood at 47.1 percent, including the growth in time deposits of individuals at 52.3 percent.
According to the updated forecasts based on the balance of factors increasing and decreasing inflation, at the end of the current year, inflation is expected to form within the forecast corridor.
Inflationary factors, such as seasonal increase in food prices, as well as primary and secondary impact of changes in regulated prices on general inflation, remain.
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