Fight against high inflation
Russian central bank surprises with sharp rate hike
The Russian ruble benefited from the decision. It gained significantly against the euro and the US dollar. Photo: Jens Büttner / dpa
© dpa-infocom GmbH
Even the analysts did not expect such a step. Even the experts did not expect that. The key interest rate will be raised to 7.50 percent.
The Russian central bank reacted to the high inflation in the country with an unexpectedly strong rate hike. The key interest rate will be raised to 7.50 percent from 6.75 percent previously, as announced by the central bank in Moscow.
Analysts had expected an interest rate hike, but on average only assumed a small rate hike to 7.0 percent.
The central bank has also prepared the markets for further measures. Accordingly, a renewed rate hike is possible at the upcoming interest rate meeting, it said.
The central bank has already implemented the sixth interest rate hike in a row. A year ago, the key interest rate in Russia was 4.25 percent.
In Russia, as in many other countries, there has recently been a sharp rise in inflation. Among other things, global material bottlenecks caused price pressure. In September, the Russian inflation rate jumped significantly, from 6.7 percent in the previous month to 7.4 percent.
The Russian ruble benefited from the decision. It gained significantly against the euro and the US dollar.