Russia's Central Bank Raises Interest Rates To 9.5%

Russia faces an 8.8% inflation rate, the Central Bank of Russia announced on Friday (11th) a sharp 1% interest rate hike, pushing its official interest rate to 9.5%. The Russian ruble has been sold off by the market, worried that if Russia sends troops to Ukraine, it will lead to Western sanctions. The weak ruble exchange rate has also become the main reason for pushing up local inflation. Although Russia's interest rate is currently higher than the inflation rate, in order to defend the ruble exchange rate, it is expected that Russia will still have the possibility of further interest rate hikes in the future.