At its BOD meeting on March 14, 2024, the Central Bank decided to keep the interest rate at 14 percent per annum. The move is reportedly aimed at ensuring the necessary monetary and credit conditions to reduce inflation to the 5 percent target given the remaining uncertainties and inflationary expectations regarding the achievement of the balance of demand and supply in the economy.
The overall inflation decreased from the beginning of the year and topped 8.3 percent in February. However, services inflation has accelerated in recent months on the backdrop of higher demand and a number of regulated price hikes. While, the inflationary expectations of the public and business remain almost unchanged and high.
Inflation is expected to be within the 8-9 percent range until the end of 2024. Uncertainties remain regarding regulated price changes and their impact on inflation expectations over the forecast period.
The next meeting of the central bank BOD to review the key rate is scheduled for April 25, 2024.
