Justifying the 6% rate,

Justifying the 6% rate, the central bank predicts inflation is growing again and will hit 4.7% at the end of this year. It says inflation will be driven by higher energy prices and “soft monetary and fiscal policies that will mitigate the negative effects of COVID-19 and support consumer demand and business activity.” Later deputy bank governor Dmitry Sologub told reporters: “If we see that inflation is in the target range, we do not see a significant expansion of the fiscal deficit, and we also see continued cooperation with donors, then I do not rule out a decrease in the interest rate.”