The Bank of Russia announced on Tuesday it decided to raise its key interest rate by 350 basis points to 12%. The decision was made at an emergency meeting held due to the ruble's recent slump.
The central bank noted that inflationary pressure is "building up" and added it sees a "substantial" risk of inflation's deviation upwards from the target in 2024.
The Bank of Russia stressed its main goal is to bring inflation down to 4% next year and pointed out its future monetary policy decisions will depend on "actual and expected inflation dynamics relative to the target and economic transformation processes, as well as the risks posed by domestic and external conditions and the reaction of financial markets."
