The expert predicted how the Central Bank of the Russian Federation will “respond” with a key bet on the imposition of sanctions against Russia – Rosbalt

To reduce market volatility amid the deteriorating foreign policy situation and the likely imposition of sanctions against the Russian Federation due to the recognition of the DNR and LNR, the Bank of Russia may act to anticipate risks and raise the key rate above 10%. This opinion was expressed by Mikhail Zeltser, an expert on the stock market at BCS Mir Investments.

Earlier in February, the Central Bank of the Russian Federation raised the key rate by 1 percentage point to 9.5% per annum.

“The situation is changing rapidly. There are global shifts on the geopolitical front. Our previous estimates assumed a reversal of pro-inflationary factors and a decrease in the rate of price pressure in the economy by the end of the year to 6%. This should have been followed by at least a pause of the Central Bank on the rate, ”Prime quotes the expert.

According to him, the current uncertainty is very high. “In order to bring down market volatility, the regulator can act to anticipate risks. Therefore, the stress scenario of the introduction of restrictive measures by the West does not exclude the temporary nature of the overshoot of the rate above the bar of 10%,” Zeltser emphasized.

In his opinion, “the situation is familiar from 2014 (after the annexation of Crimea to Russia – ed.)”. “There are parallels, but in the long term, we do not change our expectations. And we attribute the possible monetary tightening to the factor of the current risky environment,” the expert summed up.

Recall that on February 21, 2022, Russian President Vladimir Putin signed decrees recognizing the independence of the republics of Donbass. He also instructed the Russian military to ensure the maintenance of peace on the territory of the DNR and LNR.

Earlier, the State Duma adopted and submitted to the Kremlin an appeal to the President of the Russian Federation with a call to recognize the Donetsk and Lugansk People’s Republics. And on February 21, the heads of the DPR and LPR Denis Pushilin and Leonid Pasechnik turned to the Russian leader with a request to recognize the independence of the people’s republics.

Many Western leaders condemned Russia’s decision to recognize the independence of the Donbass republics, calling for these actions to be reversed and threatening harsh sanctions.

And today, the State Duma has ratified the treaties of friendship, cooperation and mutual assistance between Russia and the “people’s republics” of Donbass – the DPR and the LPR. The document, in particular, makes it possible to create Russian military bases in these territories.