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Russia’s central bank to aggressively raise interest rates to battle inflation
The post Russia’s central bank to aggressively raise interest rates to battle inflation appeared on BitcoinEthereumNews.com. Several economists, including Liam Peach, a senior emerging market economist in Capital Economics, expect the Central Bank of Russia to initiate major interest rate hikes on December 20. The speculations are despite the CBR’s Governor, Elvira Nabiullina, mentioning last week that a rate hike was not predetermined in the upcoming rate-setting meeting. Russia’s inflation has continued to rise despite rate hikes to reduce consumer prices during the war with Ukraine. The November inflation report indicated that the consumer price index had risen to 8.9% in November, compared to the 8.5% recorded in October. The rising index was mostly attributed to hiking food prices in Russia. The CBR raised interest rates by 200 basis points in October, bringing borrowing rates to 21% annually. The central bank reported on October 25 that the inflation rate was rising beyond the bank’s July forecast. The report further indicated the continued rise in other metrics, including seasonally adjusted price growth and core inflation. The central bank forecasted an inflation range between 8.0% and 8.5% by the end of the year. Another report confirmed that Russian consumers have experienced a double-digit increase in the price of basic foodstuffs over the past few months. The report highlighted the increasing consumer demand during the war, putting a strain on the country’s supply of goods. Russia has also been experiencing labor shortages and increased production costs. The country has received several sanctions from different countries since 2022, weakening its economic relations. The CBR expected to raise interest rates by 200 basis points A recent Reuters poll indicated that the CBR might raise the interest rate by another 200 basis points on December 20, bringing the borrowing rates to 23% per annum. Some economists in the poll suggested an increase in the borrowing rate to 22%, while others expected a…
The post Russia’s central bank to aggressively raise interest rates to battle inflation appeared on BitcoinEthereumNews.com.
Several economists, including Liam Peach, a senior emerging market economist in Capital Economics, expect the Central Bank of Russia to initiate major interest rate hikes on December 20. The speculations are despite the CBR’s Governor, Elvira Nabiullina, mentioning last week that a rate hike was not predetermined in the upcoming rate-setting meeting. Russia’s inflation has continued to rise despite rate hikes to reduce consumer prices during the war with Ukraine. The November inflation report indicated that the consumer price index had risen to 8.9% in November, compared to the 8.5% recorded in October. The rising index was mostly attributed to hiking food prices in Russia. The CBR raised interest rates by 200 basis points in October, bringing borrowing rates to 21% annually. The central bank reported on October 25 that the inflation rate was rising beyond the bank’s July forecast. The report further indicated the continued rise in other metrics, including seasonally adjusted price growth and core inflation. The central bank forecasted an inflation range between 8.0% and 8.5% by the end of the year. Another report confirmed that Russian consumers have experienced a double-digit increase in the price of basic foodstuffs over the past few months. The report highlighted the increasing consumer demand during the war, putting a strain on the country’s supply of goods. Russia has also been experiencing labor shortages and increased production costs. The country has received several sanctions from different countries since 2022, weakening its economic relations. The CBR expected to raise interest rates by 200 basis points A recent Reuters poll indicated that the CBR might raise the interest rate by another 200 basis points on December 20, bringing the borrowing rates to 23% per annum. Some economists in the poll suggested an increase in the borrowing rate to 22%, while others expected a…
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