Central Bank of Russia Increased The Interest Rates

Central Bank of Russia has increased the interest rates. The bank increased the policy rate to 5.50%.

In line with the market expectations, the Russian Central Bank increased the policy rate to 5.50 percent. In the resolution text, it was stated that an interest rate increase is possible in the upcoming meetings. Economists participating in the Bloomberg survey stated that they expect a 50 basis point increase from the Central Bank of Russia. Pointing out that the low vaccination rate slowed the recovery, the Central Bank of Russia underlined that the developments in inflation were above expectations. In its assessment, the Central Bank of Russia noted that the recovery in the economy is faster than expected, and that economic activity will return to pre-crisis levels in the second half of the year. While it was stated that there is a possibility of an interest rate hike in the upcoming meetings, the Russian ruble did not lose against the dollar after the decision.