OREANDA-NEWS  On December 20, the Board of Directors of the Bank of Russia will raise the key rate by 2 percentage points (pp), to 23 percent per annum, according to about two thirds (16 out of 23) of analysts surveyed by Vedomosti.

Only one economist who spoke with journalists predicted that the indicator would remain at the current level of 21 percent, while five more respondents admit an increase in the range from 23 to 25 percent. The majority of specialists surveyed by RBC also expect the rate to rise to 23 percent.

As noted earlier, by the end of November, prices in Russia increased by 1.4 percent, and in terms of annual inflation last month, after correction for seasonality, corresponded to 15-16 percent. Against the background of such data, as well as the instability of the ruble exchange rate, most experts expect a rate increase. Rodion Latypov, Chief economist at VTB Group, pointed out that the regulator's decision would be a compromise between the accelerated pace of price growth and a significant slowdown in aggregate lending in November (issuance of consumer loans decreased by 21 percent month-on-month).

At the previous meeting on October 25, the Central Bank raised the rate by 2 percentage points, although most analysts expected an increase to 20 percent. The Central Bank also maintained a firm signal, calling the possibility of raising the key rate at the next meeting not predetermined, but very likely.