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Bank of Russia doubles its key rate
The Bank of Russia Board of Directors raised the key rate to 20% per annum from February 28, 2022. The previous key rate was 9.5%, which is two times less than the current one.
“The external conditions for the Russian economy have changed dramatically. The key rate growth will allow deposit rates to be increased to the levels sufficient to compensate for the increased devaluation and inflation risks. This will help maintain financial and price stability and protect citizens' savings from depreciation,” the Central Bank said in a statement.
The regulator will make further decisions on adjusting the key rate based on an assessment of external and internal risks and the reaction of financial markets to them, with inflation dynamics relative to the target and economic development over the forecast horizon taken into account.