Bank of Russia hikes interest rates amid growing signs of stagflation
The Bank of Russia has raised its key interest rate by 50 basis points to 7.5%, citing higher inflation risks. The increase follows a 150bps hike last month and the bank stresses it does not intend to lower rates "in the coming months".
"The probability of inflation exceeding the 5% target at the end of 2014 has increased substantially," the central bank said today in a statement, attributing the rise to a weaker ruble, increased inflation expectations and "unfavourable conditions in the markets
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary Policy
Bank of Mexico to maintain tight policy, minutes say
Board says it will have to keep rates at 11.25% “for an extended period”
Lagarde warns against excessive tightening
Eurozone inflation declined sharply in May from 7% to 6.1% and core inflation declined to 5.3%
Nigerian parliament lifts central bank financing limit
Central bank has lent government tens of billions as fiscal problems mount
Hank model reveals monetary non-neutrality
Inequality and zero lower bound suggest monetary policy can impact long-term real rates
Carbon pricing would have ‘limited impact’ on eurozone inflation, says paper
Inflation would rise less than 0.2% per year until 2025 and then decline, researchers say
ECB needs ‘persistence’ in tight policy, French governor says
Transmission is slow but rate should reach terminal level in summer, says Villeroy de Galhau
Governors weigh trade-offs between inflation and financial stability
Officials stress central bank independence is key to addressing these risks
EME central banks must keep policies tight, says IMF deputy
Gita Gopinath says “markets are probably too optimistic” about cost of lowering inflation