The Russian Central Bank raises interest rates by 100 basis points

The Russian Central Bank raised the interest rate by about 100 basis points to 13% levels, contradicting expectations of its stabilization.

According to the decision issued today, Friday, September 15, the bank indicated that inflationary pressures are still high, that the growth of domestic demand has exceeded the capacity to expand production, and that the value of the ruble has declined in the summer months.

Therefore, the Russian Central Bank believes that further tightening of monetary conditions should be implemented to limit the rise in inflation from the target and return it towards 4% levels in 2024.

Inflation in Russia rose to 5.5% in August.

According to the bank’s expectations, inflation this year will range between 6% and 7%.

The Russian Central Bank stressed that the high demand for imports and the decline in exports is a major factor behind the deterioration of the ruble’s performance since the beginning of this year.