Russian Central Bank Hikes Interest Rates Again to Battle High Inflation, Though Economy Remains Resilient
-
The Bank of Russia raised interest rates to 16% from 15%, the 5th consecutive hike, to try to control high inflation.
-
Inflation is still expected to be 7-7.5% in 2023 before falling to 4-4.5% in 2024 if tight monetary policy is maintained.
-
The ruble's depreciation is having less of an impact on inflation now, but strong demand is keeping services inflation high.
-
Russia's economy has been buoyed by defense spending and energy exports despite Western sanctions.
-
Risks remain from potential global slowdown and volatility in commodity prices and the ruble exchange rate.