OREANDA-NEWS On the eve of the meeting of the Board of Directors on the key rate, the Bank of Russia published data on the decline in inflation expectations of the population.

As follows from the survey "inFOM" published on the website of the Central Bank, inflation expectations of citizens in October decreased to 11.2% from 11.7% in September. Thus, this indicator has almost returned to the July level.

Inflation expectations of the population during 2023 varied in different directions: in January they were 11.6%, in February - 12.2%, in March - 10.7%, in April - 10.4%, in May - 10.8%, in June - 10.2%, in July - 11.1%, in August - 11.5%.

Inflation expectations are one of the important factors that the Bank of Russia takes into account when making a decision on the rate.

The Central Bank started raising the key rate in July, then it was increased by 100 basis points (bp) - up to 8.5% per annum. At an extraordinary meeting of the Board of Directors on August 15, the Central Bank raised the key rate immediately by 350 bps - up to 12%. Then, a month later, on September 15, the Bank of Russia increased the rate by another 100 bps - up to 13%.

The next meeting of the Central Bank's Board of Directors on monetary policy will be held on October 27.

Analysts expect an increase in the key rate next Friday by 100 basis points (bp) - up to 14.0% per annum.

In 2021, the Bank of Russia decided to publish information on the dynamics of inflation expectations as data becomes available, even if it falls on the "week of silence".