Russia’s central bank raised its key interest rate by a higher than expected 200 basis points to 15 per cent on Friday, hiking borrowing costs for the fourth meeting running in response to a weak ruble and stubborn inflation pressure.
The bank also drew attention to increasing government spending as Russia pours fiscal resources into the defence sector and ramps up production of military supplies to prosecute what it calls its “special military operation” in Ukraine. The majority of analysts polled by Reuters had expected a smaller hike to 14 per cent. The ruble leapt to a more than six-week high against the dollar after the decision.
The central bank said inflation would range from 7.0-7.5 per cent in 2023. It had previously forecast year-end inflation at 6.0-7.0 per cent. Annual inflation was running at 6.38 per cent as of Oct. 16.
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: SaltWire Network - 🏆 45. / 63 Read more »