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Central bank in Moscow: inflation of 7.4 percent
Photo:
Yuri Kochetkov / dpa
Russia's central bank is resisting the rapidly rising prices in the country with an unexpectedly strong rate hike.
The key interest rate for supplying banks with money rose from 6.75 to 7.5 percent on Friday.
Economists had expected an increase of only half a percentage point.
It is the sixth rate hike in a row by the central bank.
A year ago, the key interest rate in Russia was 4.25 percent.
The central bank held out the prospect of further increases if inflation developed as expected.
As in many other countries, consumer prices in the country recently shot up sharply.
Among other things, global material bottlenecks caused price pressure.
In September, the Russian inflation rate jumped significantly from 6.7 percent in August to 7.4 percent.
Ruble gained in value
The ruble rose after the sharp rise in interest rates on the foreign exchange market.
The dollar and euro fell to their lowest levels in about a year and a half at 70.05 and 81.59 rubles, respectively.
Higher interest rates make the currency more attractive to investors.
A stronger ruble can also make imports cheaper and thus reduce inflation.
The next interest rate meeting is on December 17th.
Russia's central bank is aiming for an inflation rate of four percent.
The monetary authorities expect inflation to weaken to 4.0 to 4.5 percent in 2022.
apr / Reuters / dpa
