The Bank of Russia raised its benchmark rate by a bigger-than-expected 200 basis points on Friday as inflationary pressures moved significantly above expectations.<\/p>\n
The board of directors headed by Elvira Nabiullina decided to lift the key rate to 15.00 percent from 13.00 percent. Markets were anticipating a 100 basis point increase. <\/p>\n
The bank has raised the policy rate by 750 basis points over the last four meetings. <\/p>\n
The board said the decision will accelerate the formation of monetary conditions needed to ensure balanced growth in lending and steady disinflationary trends. <\/p>\n
Policymakers observed that persistently elevated inflation expectations and their further increase pose a significant risk.<\/p>\n