The VAT increase should not affect the policy of the Central Bank’s key rate, said Siluanov

© RIA Novosti / Grigory to Sysoeva in fotobounce Siluanov. Archival photo<img src="/wp-content/uploads/sites/5/2018/06/3aa5c2bbe008cbad96d30e3f40f2058f.jpg" alt="The VAT increase should not affect the policy of the Central Bank’s key rate, said Siluanov” />© RIA Novosti / Grigory to Sysoeva the image Bank

The VAT increase to 20% should not affect the policy of the Central Bank of the Russian Federation in relation to the key rate, said the first Vice Premier, Finance Minister Anton Siluanov.

The Russian Cabinet on Thursday approved a bill to raise VAT to 20% from 18%.

«First, inflation is much lower than the target of 4%, so we believe that this should not affect the policy pursued by the Central Bank,» — said Siluanov, answering the question of whether the VAT increase to increase the rate of the Central Bank.

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