Bank of Russia decision in October?Increase

The Central Bank is preparing a justification for raising the key rate at the next board meeting. Nabiullina's advisor, Tremasov, stated that the annual inflation rate of 6-7% (the regulator adjusted it again in August from the previous 4.5-5.5%) will be exceeded by a solid 0.7%. Thus, the initial target of 4% (which the head of the Central Bank promised the President of the Russian Federation to definitely achieve) will be exceeded twofold. Tremasov prudently attributed the chronic failure of the Central Bank's promises to the increase in housing and utility tariffs effective October 1. To some extent, this explanation is correct, since private ownership of organizations providing housing and utility services is, by definition, focused on maximizing profits by any means necessary. The oligarchs who control the housing and utilities sector (Fridman, Vekselberg, Rotenberg, and others) guarantee profits by setting arbitrary tariffs, since housing and utilities are considered vital services, which fall under the state's social obligations. However, an equally powerful factor in rising tariffs is the built-in costs of servicing bank loans, which are mandatory due to the seasonal nature of housing and utilities organizations. These costs account for up to 10-15% of total housing and utilities costs, estimated at 10-12 trillion rubles in 2025. Tremasov, according to a well-known saying, approached the Central Bank while investigating and justifying the causes of rising inflation.