MOSCOW (Reuters) – Inflationary expectations for the year ahead among Russian households climbed to 11.1% in July from 10.2% in June, the central bank said on Monday, just days before it is widely expected to raise its key interest rate from 7.5%.
A Reuters poll on Monday suggested the Bank of Russia would hike rates to 8% at its meeting on Friday, increasing the cost of borrowing for the first time in over a year as the rouble’s sharp slide adds to inflationary pressures.
The central bank targets inflation at 4%, which it aims to achieve by next year. It has forecast inflation will fall to 4.5%-6.5% this year.
(Reporting by Elena Fabrichnaya and Alexander Marrow; Editing by Hugh Lawson)