Moscow, Russia: Russia’s central bank cut its key interest rate by 300 basis points for the third time since an emergency rate hike in late February, citing cooling inflation and a recovering ruble.
Kirill Kudryavtsev | AFP | Getty Images
Russia’s central bank unexpectedly kept its key interest rate unchanged at 21% on Friday, citing improved monetary tightening, creating conditions for curbing high inflation.
“Monetary conditions have tightened more sharply than expected at the key interest rate decision in October,” the bank said. explainpointing out the “autonomous” factor in monetary policy.
“Given the significant rise in borrower interest rates and cooling of credit activity, the tightening of monetary conditions creates the necessary prerequisites to resume the deflationary process and bring inflation back to target, despite currently higher price growth and higher domestic demand, ” it added.
The central bank is widely expected to raise interest rates by 200 basis points on Friday, following a move in October as Russia struggled to contain the military costs of Moscow’s invasion of Ukraine and Western sanctions on its key commodities. Inflation. exit.
Russia’s consumer price index rose to an annual rate of 8.9% in November, up from 8.5% in October. This increase was mainly driven by rising food prices, As milk and dairy prices soar This year.
This breaking news story is being updated.
