Russia’s central bank has raised its key interest rate to a record 21% in an effort to combat rising inflation. The regulator said it was considering a further increase in December. The rate was raised from 19%, which had already been the highest level in more than two years. The Russian economy is suffering from high inflation, partly due to increased military spending and Western sanctions. The central bank’s actions are aimed at cooling the overheated economy and stabilizing prices.
The decision comes as the Russian ruble continues to weaken against major currencies, making imports more expensive and fueling inflation. The bank expects inflation to remain above its target for the foreseeable future. The key rate is now at its highest level since the early 2000s, reflecting the severity of the economic pressures facing Russia.
