Russian central bank Chief Nabiullina: Inflation could strongly deviate from 4% target

“Annual inflation could significantly deviate from its 4% target for a prolonged period,” said Governor of Russia's central bank Elvira Nabiullina during RBC business daily in an interview published on Friday.

The policymaker added that annual inflation could reach 7% this month and only return to 4% in the second half of 2022.

The 7.0% inflation is hopes as the peak by the Russian central Governor while saying, “We ‘act carefully’ when making key rate decisions in times of uncertainty.

That said, the central raised the policy rate by 25 basis points (bps) to 6.75% on September 10, lagging expectations of a 50 bps rate hike.

Market reactions

USD/RUB pair takes offers around 72.34, down 0.22% intraday, following the news.