Russia Raises Key Interest Rate to 15% to Fight Inflation Fueled by War Spending

Russia's Central Bank raised its key interest rate to 15% to curb high inflation.

The bank predicts a long period of "tight monetary conditions" to bring inflation down to 4%.

Increased government spending on the war in Ukraine is fueling inflation.

Russia has been able to weather sanctions so far but spending is exceeding production capacity.

Economists disagree on whether high interest rates will stifle growth or are needed to control inflation.