Central Bank of Russia raises key interest rates to 20% p.a.
The Central Bank of the Russian Federation raised the key interest rates this morning. The Bank of Russia Board of Directors has decided to increase the key rate to 20% per annum with effect from 28 February 2022.
The regulator explains that conditions for the Russian economy have drastically changed. The increase of the key rate aims to ensure a rise in deposit rates to levels needed to compensate for the increased depreciation and inflation risks.
Below is the full statement by the central bank:
The Bank of Russia Board of Directors decided to increase the key rate to 20% per annum from 28 February 2022. External conditions for the Russian economy have drastically changed. The increase of the key rate will ensure a rise in deposit rates to levels needed to compensate for the increased depreciation and inflation risks. This is needed to support financial and price stability and protect the savings of citizens from depreciation.
Further key rate decisions will be made taking into account risks posed by external and domestic conditions and the reaction of financial markets, as well as actual and expected inflation movements relative to the target and economic developments over forecast period.