Russian Central Bank Raises Interest Rate to Record 21% by 200 Basis Points on October 25

Oct 28, 2024, 03:06 AM

The Russian Central Bank has raised its key interest rate to a record 21% on October 25 to combat soaring inflation, which has reached 9% annually. This increase of 200 basis points, the highest in more than two decades, is driven by elevated military spending due to the ongoing war in Ukraine. Russia's money supply (M2) is growing at 18% per year, significantly above the target growth rate of 8.4%, further contributing to inflationary pressures. The central bank's decision aims to stabilize the economy amidst these challenges.