15 August 2023

Russian central bank announces major interest rate hike

The central bank added that demand in the economy has exceeded the country's ability to expand output, increasing inflation and affecting “the ruble's exchange rate dynamics through elevated demand for imports.”

www.rt.com


Russian central bank announces major interest rate hike 


RT
2 minutes

The 3.5% increase comes a day after the ruble tumbled to its weakest level since March 2022

The Bank of Russia raised interest rates by 350 basis points to 12% at an emergency meeting on Tuesday in a bid to halt the rapid depreciation of the ruble against world currencies.
  • “Inflationary pressure is building up… The decision is aimed at limiting price stability risks,” the regulator said in a statement.
The central bank added that demand in the economy has exceeded the country's ability to expand output, increasing inflation and affecting “the ruble's exchange rate dynamics through elevated demand for imports.”
  • “Consequently, the pass-through of the ruble's depreciation to prices is gaining momentum and inflation expectations are on the rise,” it noted.

On Monday, the ruble sank to a 16-month low against the dollar and euro, reaching 101 versus the greenback, and 111 against the European single currency.

  • The ruble strengthened early on Tuesday ahead of the regulator’s statement, but later slid back, and was trading around 98 to the dollar and 107 to the euro at 11:44am local time in Moscow.
The Bank of Russia announced an extraordinary meeting shortly after the sharp depreciation to reassess the key interest rate, which previously stood at 8.5%.
The regulator also said on Tuesday that the key rate may be hiked again, in the event of increased pro-inflationary risks.

For more stories on economy & finance visit RT's business section  

Russia-Ukraine war updates for Aug.15, 2023

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Russia central bank jacks up key interest rate by 350 basis points to 12%
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Russia's central bank bids to prop up the plummeting ruble by hiking interest  rates to 12% at an emergency meeting
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Russia raises key rate sharply to 9.5%, flags more possible hikes | Reuters

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WESTERN MEDIA

MOSCOW, Aug 15 (Reuters) - Russia's central bank hiked its key interest rate by 350 basis points to 12% on Tuesday, an emergency move to try and halt the rouble's recent slide after a public call from the Kremlin for tighter monetary policy.
4 hours ago
8 hours ago · Russia's central bank hiked its main interest rate by 3.5 percentage points to 12% Tuesday after the ruble hit a 17-month low the previous ...
7 hours ago · The central bank hiked its key rate 3.5 percentage points to 12% after announcing a meeting of its board of directors a day earlier as the ruble ...
2 hours ago · Russia's Central Bank on Tuesday raised the country's key interest rate by 3.5 percentage points to 12 percent — a significant increase that ...
9 hours ago · Russia's central bank has hiked interest rates by 3.5 percentage ... The decision to raise the key rate from 8.5% to 12% was announced after ...
12 hours ago · Russia's central bank on Tuesday hiked interest rates by 350 basis points to 12% at an emergency meeting, as Moscow looks to halt a rapid ...
9 hours ago · The bank on Tuesday raised the rate to 12% from 8.5%, a day after the currency temporarily fell past 100 to the U.S. dollar for the first time ...

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