Russia’s central bank raises key rate to 21% to rein in inflation

by Pelican Press
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Russia’s central bank raises key rate to 21% to rein in inflation

09 June 2024, Russia, Moskau: A guardhouse of the Kremlin (l) and the Foreign Ministry (M, background) stand in the center of the capital. Photo: Ulf Mauder/dpa (Photo by Ulf Mauder/picture alliance via Getty Images)

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Russia’s central bank on Friday raised its key interest rate by 200 basis points to 21%, citing higher-than-forecast consumer price increases and warning of ongoing high inflation risks in the medium term.

The institution noted annual inflation of 8.4% as of Oct. 21 and now anticipates the print will sit in a 8.0–8.5% range by the end of 2024.

“Over the medium-term horizon, the balance of inflation risks is still significantly tilted to the upside,” the bank said in a statement. “The key risks are associated with persistently high inflation expectations and the upward deviation of the Russian economy from a balanced growth path, as well as with a deterioration in foreign trade conditions.”

This breaking news story is being updated.



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