Russian central bank hikes interest rates to 12% as ruble falls
The Central Bank decided to hike bank interest rates to 12% on Tuesday.
KATHMANDU: The Central Bank of Russia has decided to increase the interest rate by 350 basis points to 12 percent.
The Central Bank decided to hike bank interest rates to 12% on Tuesday.
The Central Bank, which called an emergency meeting, stated that this action was made to reduce the risk of price stability owing to inflationary pressure.
According to the bank, Russia’s annual inflation rate reached 4.4 percent on Aug 7, and the rate of price growth is still increasing.
According to the bank, the constant increase in domestic demand has hampered the ability to expand production, while inflationary pressures have risen.
Furthermore, the fluctuations of the currency exchange rate have been influenced by the increasing demand for imports.
The Bank’s current decision is predicted to bring inflation to 4% in 2024.
The Russian currency is 101 less than the US currency. On Monday and Tuesday, the ruble remained at 98.
