Russia Central Bank Hikes Key Rate By 350 Bps

(RTTNews) - Russia's central bank raised its benchmark rate sharply by 350 basis points at an emergency meeting on Tuesday to contain the depreciation of the ruble. The Board of Directors of the Bank of Russia decided to lift the key rate to 12.00 percent from 8.50 percent.

"The decision is aimed at limiting price stability risks," the bank said. Policymakers observed that the pass-through of the ruble's depreciation to consumer prices is gaining momentum and inflation expectations are on the rise.

The risk of inflation deviating upward from the target in 2024 is substantial, the bank noted. The policy action aims to bring inflation back to the 4 percent next year.