ANKARA
Russia’s Central Bank on Friday raised its key rate by 100 basis points to 9.5% to cushion surging inflation, bringing borrowing costs to their highest level in five years.
“Inflation is developing appreciably above the Bank’s October forecast,” the bank said in a statement.
It also said that inflation expectations have not declined yet and hit multi-year highs, adding the monetary policy stance is aimed to return inflation to 4%.
Annual inflation in January climbed to 8.7% (vs 8.4% in December 2021), which is projected at 8.8% as of 4 Feb.
Expanding demand, global commodity prices and the rapid recovery of economic activity exacerbates inflationary pressure, the bank said.
Copyright 2022 Anadolu Agency. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
