Economics
Russia Unexpectedly Hikes Rate Before Risk-Loaded Quarter
- Decision was forecast by 16 economists in Bloomberg survey
- Foreign currency purchases will resume in full from January 15
This article is for subscribers only.
Russia’s central bank unexpectedly increased borrowing costs for the second time this year and signaled it may soon act again as inflation accelerates amid a tax hike and possible new U.S. sanctions.
“In the current conditions, it’s very important for us to maintain our conservative approach to assessing risks and conducting monetary policy,” central bank Governor Elvira Nabiullina said at a press conference following the decision. She stressed however that Russia isn’t in a rate hiking cycle and that tightening now is aimed at making it easier to resume planned easing late next year or in early 2020.