Russia Unexpectedly Raises Main Rate as S&P Lowers Rating

Russia’s central bank sprung a surprise by raising its benchmark interest rate after Standard & Poor’s downgraded the world’s biggest energy exporter for the first time in six years as capital outflows threaten growth.

The central bank, whose scheduled decisions have been correctly predicted by the majority of economists every month since September 2012, increased the one-week auction rate to 7.5 percent from 7 percent today, according to a website statement. Hours earlier, S&P cut the nation’s sovereign rating to one level above junk, the lowest investment grade, on par with Morocco and Uruguay, and which Russia last had in 2005.