Economics
Ruble Drop Points to Bigger Key-Rate Hike as Inflation Speeds Up
- Economy Minister warns currency weakness will feed into prices
- Despite Russia’s early tightening, inflation proves sticky
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The ruble’s recent weakness will push up inflation in the coming weeks, Russia’s Economy Minister said, as pressure mounts for the central bank to deliver another large interest-rate hike at its next meeting.
“This nervousness will clearly continue,” Maxim Reshetnikov said Wednesday evening. “The exchange rate will be weaker and we will immediately see that in an acceleration of non-food inflation” and service prices, he said.