The Central Bank of Russia raised its policy rate by 200 basis points to 18 percent, in line with expectations.
In the statement made by the bank, it was stated that inflation pressure on the country’s economy continues at high levels.
In the statement, it was pointed out that the increase in domestic demand significantly exceeded the possibilities of increasing the production of goods and services, and the statement was used: “The Central Bank of Russia has decided to raise the policy rate to 18 percent.”
Market expectations were that the Bank would raise its policy rate by 100 to 200 basis points.
The statement said that additional monetary policy tightening was needed for inflation to begin to fall.
The Central Bank of Russia last kept its policy rate unchanged at 16% on June 7.
