Russia hikes interest rates to 21pc, highest since 2003

AFP :

Russia’s central bank hiked interest rates to 21 percent on Friday, taking borrowing costs to their highest level in more than 20 years amid surging inflation.
The rise takes rates above an emergency level introduced in February 2022 — just after Moscow ordered troops into Ukraine — and to their highest since 2003.
“Further tightening of monetary policy is required to ensure the return of inflation to the target and reduce inflation expectations,” the bank said in a statement announcing the increase.
The bank directly blamed high government spending for inflation and said it could hike rates yet again if the pace of price rises does not cool.
“Additional fiscal spending and the related expansion of the federal budget deficit in 2024 have pro-inflationary effects,” it said.