Posted 12/15/2023, 11:03:00 AM
Russia hikes interest rates to 16% to curb soaring inflation
- Russia's Central Bank raised its key interest rate to 16% to fight high inflation, the 5th rate hike since summer
- Inflation accelerated to 7.5% in November, with expectations it will be near the upper end of the 7-7.5% forecast range in 2023
- Higher interest rates aim to curb demand and encourage saving over spending to deal with inflation
- Lack of manpower after mobilization is driving up wages and prices, creating a cycle of rising inflation
- Central Bank chief warned of risks of economic "overheating" with business lending still growing rapidly