The Central Bank of Russia Hints at Further Interest Rate Increase

The Central Bank of Russia has hinted that it is ready to further raise its key interest rate to support the ruble, stressing that the current level of the rate of 12% corresponds to increased inflationary pressures.

The press service of the Russian regulator said at a press conference today, on Tuesday, after the decision to raise the interest rate, that in the event of an increase in inflationary risks, an additional increase in the interest rate is possible.

She added that the Central Bank of the Russian Federation will make further decisions regarding the interest rate, based on the dynamics of inflation and the process of economic restructuring, as well as risks arising from internal and external conditions.

Surprise Decision to Raise Interest Rate

Earlier today, the Central Bank of Russia decided at a board meeting to raise the main interest rate by 3.5% to 12% per annum.

This decision came as a surprise to the markets, as analysts polled by the Novosti agency expected the index to rise by 1.5% – 2%.

Source: RT