Russia's Central Bank raised its key interest rate by 200 basis points to 21% on Friday, in response to rising inflation and high inflationary expectations among the population and businesses.

This rate is the highest since March 2022, when the Central Bank raised it to 20% to stabilize financial markets following the full-scale invasion of Ukraine. The rate was subsequently lowered to 7.5% in 2023 but has since been increased eight times.

The current rate of 21% is extremely high for the economy. The Central Bank of Russia acknowledges that its decision is a reaction to rising inflation and high inflationary expectations among the population and businesses. The bank has also warned of the possibility of further rate hikes and plans to curb inflation by 2026.

You need to subscribe to read this article. Go to the full version of the page.
Russiawar economystate budgetOil price cap