Nabiullina Dooms Economy With Higher Rates as Ruble Falls

By swinging at inflation with her fourth interest-rate increase since March, Russian central bank Governor Elvira Nabiullina is hitting an economy already buckling under the weight of sanctions and a currency run.

The Bank of Russia, which unexpectedly raised its key rate today to 9.5 percent percent from 8 percent, “will continue to take measures aimed at slowing down consumer-price growth” to its medium-term target of 4 percent, according to a website statement. It conceded that economic growth will be “close to zero” this quarter and the following three months.