Economics
Russia Surprises With Rate Hike, Signals More to Come
- Policy changes should be gradual, central bank chief says
- Russia follows Brazil, Turkey with hikes amid rising inflation
Moscow City business district stand near a foreign currency exchange bureau, Moscow.
Photographer: Andrey Rudakov/Bloomberg
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The Bank of Russia increased interest rates for the first time since 2018 and said further hikes are likely after inflation accelerated faster than expected.
The benchmark rate was raised 25 basis points to 4.5% on Friday. Just three analysts in a Bloomberg survey of 41 economists forecast the move, with the rest predicting a hold. Bloomberg reported earlier this week that the rate could be raised to 5.5% by the end of the year.