The BOD of the Central Bank at its today’s meeting decided to keep the interest rate at 13.5% per annum, the Bank's press service said today.

The decision is reportedly aimed at returning core inflation and inflation expectations to a sustainable downward trajectory, as well as at creating sufficient conditions for achieving the 5% inflation target in the medium term. 

Overall inflation has moved into a downward trend since October and topped 9.8% year-on-year in December. This can be seen as a sign of strong price stabilization, the Central Bank said. Towards the end of 2024, the growth of prices  of goods and services in three quarters in the consumer basket slowed down compared to 2023. 

In November-December, there was an increase in inflation expectations of the public and businesses, associated with the manifestation of seasonal supply factors. 

A further weakening of this impact on inflation, relatively tight monetary conditions and ensuring macroeconomic stability will help reduce inflation expectations, the Central Bank noted. 

According to updated forecasts, in the end of 2025, overall inflation is expected to be at the level of 7-8%. 

Taking into account these factors and to ensure medium-term price stability, the Central Bank decided to keep the key rate unchanged, at 13.5% per annum. 

The Central Bank will continue to build monetary conditions at a sufficient level of tightness to ensure a sustainable reduction in inflation to the 5% target in the medium term. 

If there is a likelihood and basis for increased upward pressure on aggregate demand and prices in the economy compared to the expected level, the tightness of monetary conditions may be revised. 

The next meeting of the Central Bank on the interest rate is scheduled for March 13, 2025.