Moscow, Russia, June 9, 2024: The guardhouses of the Kremlin (left) and the Ministry of Foreign Affairs (center, background) stand in the center of the capital. Photo: Ulf Mauder/dpa (Photo: Ulf Mauder/Photo Alliance via Getty Images)
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Russia’s central bank raised its key interest rate by 200 basis points to 21% on Friday, citing higher-than-expected rises in consumer prices and warning that medium-term inflation risks remained high.
The agency noted that annual inflation was 8.4% as of October 21, and it now expects inflation to be in the 8.0-8.5% range by the end of 2024.
“In the medium term, the balance of inflation risks is still significantly tilted to the upside,” the bank said in a statement. “The main risks are related to continued high inflation expectations, the deviation of the Russian economy from a balanced growth path and the deterioration of foreign trade conditions.”
This breaking news story is being updated.
