MOSCOW (Reuters) – Russia’s central bank raised its key interest rate by a higher than expected 200 basis points to 15% on Friday, hiking borrowing costs for the fourth meeting running in response to a weak rouble and stubborn inflation pressure.
“Current inflationary pressures have significantly increased to a level above the Bank of Russia’s expectations,” the bank said in a statement.
The central bank has now raised rates by 750 basis points since July, including an unscheduled emergency hike in August as the rouble tumbled past 100 to the dollar and the Kremlin called for tighter monetary policy.
The majority of analysts polled by Reuters had expected a smaller hike to 14%.
(Reporting by Reuters; Writing by Alexander Marrow)
