Bank of Russia Raises Key Rate to 21%
The Bank of Russia increased the key rate by 200 basis points to 21%.
Reasons for the hike include higher-than-expected inflation and rising inflation expectations.
Increased domestic demand and additional budget spending for 2024 are further fueling inflation.
The Bank of Russia may continue tightening policy to bring inflation back to target levels.
Conclusion
The rate hike aims to control inflation, with potential for further adjustments depending on economic trends.
