Economics
Russia Considers Faster Rate Hikes This Year as Inflation Spikes
- Annual inflation quickened to the fastest level since 2016
- Central bank considers raising key rate to 5.5% this year
A pedestrian passes the headquarters of Russia's central bank in Moscow.
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
The Bank of Russia is considering moving faster than previously signaled to tighten monetary policy and may bring its key interest rate up by 125 basis points or more before the end of the year, according to a person with knowledge of the discussions.
A surge in inflation and concerns about government plans to increase spending mean the central bank may raise the rate in several steps to 5.5% or possibly even 6% -- though that’s currently seen as less likely -- by the end of the year, the person said, speaking on condition of anonymity to discuss deliberations that aren’t public. The rate now stands at a record low of 4.25%.