Russia’s central bank raises interest rate to 8.25%
Moscow, Russian Federation (AHN) – Strong inflationary pressure that threatened to derail Russia’s feeble economic recovery prompted the central bank to raise its key interest rate by 0.25 basis points to 8.25 percent.
The Russian Central Bank announced the increase in its refinancing rate on Friday and said it would take effect on Tuesday.
It marked the second time since February that the bank has raised its rate, before that the bank had not raised its main interest rate in two years.
Bank officials said their focus was to combat inflation. The inflation rate reached 9.6 percent on April 25.
In addition, the value of the ruble has risen against the dollar. The ruble is at its highest rate in currency trading against the dollar since December.
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