Home Business The Russian Central Bank unexpectedly raised interest rates by 75 basis points, the ruble broke the 70 mark in 1 year | Anue Juheng-International Political Economy

The Russian Central Bank unexpectedly raised interest rates by 75 basis points, the ruble broke the 70 mark in 1 year | Anue Juheng-International Political Economy

by news dir

Considering that inflation growth did not show signs of slowing down, the Central Bank of Russia unexpectedly raised interest rates by 75 basis points (3 yards) on Friday (22nd), an increase far exceeding market expectations. The exchange rate of the ruble against the US dollar has risen sharply after hearing the news. For the first time, it broke through 70 levels.

The Central Bank of Russia announced on Friday that it would raise the benchmark interest rate by 3 yards to 7.5%, which was a big surprise to the market. Bloomberg’s interview with 44 economists showed that only one prediction was successful, and the remaining economists all expected to raise interest rates. 1 to 2 yards.

(Photo: Bloomberg)

In order to ease the huge inflationary pressure, the Central Bank of Russia has raised interest rates 6 degrees this year, with a cumulative increase of 325 basis points, or 13 yards. The central bank statement also stated that if the situation develops in line with basic expectations, further interest rate hikes will not be ruled out in the future.

The central bank’s decision drove the ruble to rise, and Investing.com data showed that the ruble against the dollar rose above 70 to 69.9529. It rose by 1.34% before the deadline, temporarily reporting 70.1459 rubles to the US dollar.

At the same time as the interest rate statement was released, the Bank of Russia also raised its 2021 inflation forecast to 7.4% to 7.9%, higher than the previous forecast of 5.7% to 6.2%.

The central bank said that the inflation rate as of October 18 was 7.8%, but it is expected to fall back to around the central bank’s target set by the central bank next year, which is 4% to 4.5%.

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