It will also take further decisions on the policy rate based on a “risk assessment of external and internal conditions”.
The Russian central bank announced Monday to raise its key rate very sharply, by 10.5 points, to 20%, to face the severe economic sanctions decreed by the West to punish Moscow for its invasion of Ukraine.
“The Board of the Bank of Russia decided to raise the key rate to 20% per annum“Said the monetary institution, quoted by Russian news agencies. “The Bank of Russia will make new decisions on the key rate based on an assessment of the risks of external and internal conditions and the response of financial markets to these risksshe added, as she tries to defend the ruble.
The United States, the European Union and other countries have announced that they will exclude certain Russian banks from the Swift international banking payment system and any transactions with Russia’s central bank. The G7 countries – Canada, France, Germany, Italy, Japan, Britain and the United States – have warned that they will take “other measuresadding to the sanctions already announced if Russia does not cease its military operations. Before Western sanctions and the invasion of Ukraine, inflation was already soaring in Russia, forcing the Central Bank to raise its key rate several times. The key rate is the main tool in the fight against inflation.
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