"Russia's Surprising 15% Interest Rate Hike to Combat Inflation"

The Bank of Russia unexpectedly raised interest rates by 200 basis points to 15%, marking the fourth consecutive increase, in response to a weak rouble, persistent inflation, and increased government spending. The central bank has raised rates by a total of 750 basis points since July. Inflationary pressures have exceeded the bank's expectations, driven by high lending growth and domestic demand outpacing the provision of goods and services. The bank acknowledged that it may not achieve its 4% inflation target next year and forecasted year-end inflation for 2024 at 4-4.5%. The decision caused the rouble to surge against the dollar.