Russia’s Central Bank Hikes Interest Rate to 4.5%

The Central Bank of Russia on Friday decided to raise its main interest rate by 0.25% to 4.5%, due to the recent rise in inflation above the central bank’s forecasts.

The bank’s policy statement noted that “domestic demand is recovering more steadily and faster than expected, outstripping the pace of output growth in a number of sectors.”

In addition, the statement said that the pace of economic recovery is higher than expected, with more businesses reporting a return to their pre-pandemic production rates.

The decision marked the first change in interest rates in Russia since July 2020.

A similar rate hike is expected in the Russian central bank’s upcoming meeting in April.