Russia's Central Bank Takes Action to Combat Inflation with Interest Rate Hike

Russia's central bank has raised its key interest rate by 100 basis points to 13 percent, marking the third rate hike in two months, as the country grapples with higher inflation and a weaker rouble. Inflation in Russia has accelerated in recent months, remaining stubbornly high, and the central bank has failed to meet its target of four percent. The bank cited high inflationary pressure and the depreciation of the rouble as reasons for the rate hike. It also adjusted its year-end forecast for inflation and indicated the possibility of further rate increases.