Russia Keeps Door Open to More Hikes After Latest Big Increase
- Central bank’s 100bp raise matched the majority of forecasts
- Annual inflation, inflation expectations are at six-year highs
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The Bank of Russia delivered its second 100 basis-point hike in interest rates this year and warned that monetary tightening isn’t over yet as a raft of factors from labor shortages to geopolitical tensions complicate its fight with inflation.
The central bank’s seventh straight increase took the key rate to 8.5%, in line with the expectations of the majority of economists in a Bloomberg survey. While its statement tweaked previous phrasing to cite the possibility of a single rate increase in coming meetings -- rather than rate increases -- Bank of Russia Governor Elvira Nabiullina suggested analysts shouldn’t read too much into this.