Russia Unexpectedly Raises Rates as Inflation Breaches Goal

Russia’s central bank unexpectedly raised all policy rates by a quarter-point after inflation exceeded its target, splitting from policy makers in other major economies focused on bolstering economic growth.

The Moscow-based Bank Rossii raised the refinancing rate to 8.25 percent from 8 percent, the first increase in 16 months, it said in a statement on its website today. The overnight auction-based repurchase rate will rise to 5.5 percent from 5.25 percent and the overnight deposit rate to 4.25 percent from 4 percent, effective tomorrow. Three of 15 economists forecast an increase in the refinancing rate in a Bloomberg survey with the rest predicting no change.