Russia's Central Bank Hikes Key Rate to 15% as Inflation Soars
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Russia's Central Bank raised its key lending rate to 15%, up 200 basis points, to bring down high inflation. This is the 4th rate hike in half a year.
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Inflation pressures have exceeded the Bank's expectations, with annualized inflation over 12% in Q3.
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Raising rates aims to curb inflation by making borrowing costlier and encouraging savings.
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Sanctions over Ukraine war and higher defense spending have weakened Russia's economy and the ruble.
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The ruble has dropped about 25% against the dollar this year.