Russia's Central Bank Raises Key Interest Rate, Warns of Further Increases
By Paul Hannon
Russia's central bank on Friday raised its key interest rate in
response to a stronger-than-expected pickup in inflation as the
economy recovers from the effects of the Covid-19 pandemic.
In a statement, the Bank of Russia said it had lifted its key
rate to 7.5% from 6.75%, having begun to tighten its policy in
March, when its key rate stood at 4.25%.
The central bank said further rate rises may not be needed to
bring inflation down to its 4% target. Russia's inflation rate was
7.4% in September.
"The contribution of persistent factors to inflation remains
considerable on the back of faster growth in demand relative to
output expansion capacity," the central bank said. "In this
environment, given that inflation expectations are up again, the
balance of risks for inflation is markedly tilted to the
Write to Paul Hannon at firstname.lastname@example.org
(END) Dow Jones Newswires
October 22, 2021 07:20 ET (11:20 GMT)
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