close

Russia hikes interest rate for 4th time this year as inflation persists

By Ap 2 min read

MOSCOW (AP) — Russia’s Central Bank on Friday raised its key lending rate for the fourth time

It said seasonally adjusted price growth in the third quarter exceeded an annualized 12% and inflation for the year is expected to be about 7%. The bank said it expected inflation to fall to about 4% in 2024.

Raising interest rates is intended to impede inflation by increasing the cost of borrowing and encouraging savings.

“Steadily rising domestic demand is increasingly exceeding the capabilities to expand the production of goods and the provision of services. Inflation expectations remain elevated. Lending growth paces are invariably high,” the bank said.

Sanctions imposed over Russia’s military operation in Ukraine and the ruble’s exchange value, which has dropped about 25% against the US dollar this year.

CUSTOMER LOGIN

If you have an account and are registered for online access, sign in with your email address and password below.

NEW CUSTOMERS/UNREGISTERED ACCOUNTS

Never been a subscriber and want to subscribe, click the Subscribe button below.

Starting at $4.79/week.

Subscribe Today