World meat industry news

State support for the agro-industrial complex of the Russian Federation should be increased, its availability and size in the context of a sharp increase in the key rate by the Bank of Russia will be decisive in the dynamics of food inflation, experts expressed this opinion to RIA Novosti.

On Tuesday, the Board of Directors of the Bank of Russia, at an extraordinary meeting, decided to raise the key rate by 350 basis points at once, to 12% per annum, the maximum level since May 2022. The decision on such a noticeable increase was made in order to limit the risks for price stability, the regulator explained.

"An increase in the rate by 3.5 percentage points may be quite sensitive for enterprises in the agro-industrial complex, especially given their practice of attracting short-term working loans due to the seasonal nature of their activities. This is especially true for farmers, as they choose debt in preparation for the sowing campaign and repay it in sales period," said Elizaveta Utkina, junior director for corporate ratings at the Expert RA agency.