Russian Central Bank Hikes Key Rate After Ruble Falters
PAY ATTENTION: Help us change more lives, join TUKO.co.ke’s Patreon programme.
Russia's central bank on Tuesday hiked its key interest rate from 8.5 to 12 percent, after the ruble crashed to a more than 16-month low against the dollar.
"This decision was taken in order to limit the risks to price stability," the central bank said, after convening for an extraordinary meeting earlier in the day.
It warned that inflationary pressure was still rising, and said the bank risked missing its inflation target in 2024 if prices continued to increase at their current rate.
"The Bank of Russia will make further decisions on the key rate, taking into account the actual and expected inflation dynamics relative to the target," it said.
The bank is next scheduled to consider its key rate on September 15.
The ruble has shed around 30 percent of its value against the dollar since the start of the year, as Moscow grapples with falling export revenues, rising imports and higher military spending.
PAY ATTENTION: TUKO.co.ke is on Threads - follow us and get the news directly in the app!
Inflation has also remained stubbornly high, despite the bank tightening monetary policy, with consumer prices rising 4.3 percent year-on-year in July.
Data from the Moscow Exchange showed the ruble weakening against the dollar after the rate decision, slipping to 96.83 at 10:48 local time (0748 GMT).
On Monday the currency fell to over 100 rubles to the dollar, as one Kremlin aide publicly criticised "loose monetary policy" in an op-ed published in state media.
The decline in the ruble and creeping inflation has prompted fears ordinary Russians' standard of living could take a hit.
Source: AFP
Bishop Mark Kariuki Leaves Wife In Tears After Gifting Her Brand New Car On Her 50th Birthday
Woman Laments About Boyfriend's Male Friend, Says Bromance Threatens Their Relationship: "He's Always Here"
Copia Fires Over 300 Employees, Cites Harsh Economic Conditions: "Restructuring Process"
Russia's central bank warned inflationary pressure was still rising
Russian central bank hikes key rate after ruble falters - Briefly.co.za
Russian central bank hikes interest rates to 12 percent as ruble falls - The Washington Post
