Economics
Russia Pivots to Rate Increases After First Hike Since 2014
- Benchmark raised to 7.5%; most economists predicted no change
- Central bank pauses foreign-currency purchases until end-2018
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Russia’s central bank unexpectedly raised interest rates for the first time since 2014, following its counterparts across emerging economies as inflation risks mount with a slumping currency and threats of U.S. sanctions.
Policy makers said they’ll “consider the necessity of further increases” after lifting their benchmark to 7.5 percent, a level last seen in March, from 7.25 percent, according to a statement on Friday. Governor Elvira Nabiullina, who first broached the possibility of a rate hike earlier this month, said easing may not resume for more than a year.