On Tuesday, Russia’s central bank boost its essential interest rate from 8.5 to 12 percent, after the Russian ruble slammed to a more than 16-month low against the US dollar.
The Russian central bank said that this conclusion was carried out to determine the risks to cost resilience, after calling for an unusual meeting earlier in the day.
It cautioned that inflationary tension was still growing, and said the central bank threatened to skip its inflation target in 2024 if costs continued to grow at their recent rate.
It added that the Bank of Russia will make additional conclusions on the fundamental rate, carrying into account the authentic and expected inflation dynamics close to the target.
The Russian bank is next planned to evaluate its fundamental rate on September 15.
Russia’s ruble has slipped around 30 percent of its value against the US dollar since the beginning of the year, as Russia tussles with dropping export earnings, increasing imports, and increased military spending.
Inflation has also remained heightened, despite the bank tensing monetary policy, with consumer costs increasing 4.3 percent year-on-year in July.
