Russian Central Bank Takes Aggressive Measures to Tackle Inflation and Strengthen Economy

The Russian central bank has raised its key interest rate by 100 basis points to 13%, marking the third consecutive rate hike in response to inflationary pressures and a weak rouble. The bank warned that rates would need to stay high for a significant period of time until it is convinced of a sustainable inflation slowdown. It also raised its 2023 inflation forecast to 6-7%, above the 4% target, and warned that a tightening labor market would limit further economic growth. The central bank indicated that it may consider further rate increases in upcoming meetings.