Russia raises key interest rate again as inflation and exchange rate worries continue
Russia's central bank has raised its key lending rate by one percentage point to 13%, a month after imposing an even larger hike MOSCOW -- The Central Bank of Russia raised its key lending rate by one percentage point to 13% on Friday, a month after imposing an even larger hike, as concerns about i NFL ation persist and the ruble continues to struggle against the dollar. The increase comes as annualized i NFL ation rose in September to 5.5% and the bank said it expected it would reach 6%-7% by the end of the year. “I NFL ationary pressure in the Russian economy remains high. Significant pro-i NFL ationary risks have crystallized, namely the domestic demand growth outpacing the output expansion capacity and the depreciation of the ruble in the summer months," the bank's board said in a statement. "Therefore, it is required to additionally tighten monetary conditions.” The bank in August increased the lending rate to 12% — a jump of 3.5 percentage points — as the ruble...