Economists polled by Reuters had expected the Russian Central Bank to raise rates Interest By 100 basis points to 20 percent.
The central bank said in a statement, “Further monetary policy tightening is required to ensure that inflation returns to the target level and to lower expectations.” Inflation“.
And he said Russian Central: “In the medium term, the balance of inflation risks remains significantly tilted to the upside.”
And confront Russia Severe economic challenges, which include unprecedented Western sanctions due to the war in Ukraine.
The impact of the decision on the Russian economy
Raising interest rates is expected to slow economic growth in Russia, as it will make borrowing more expensive for businesses and individuals. It may also lead to increased unemployment and reduced investment.
Economic experts believe that this decision is an attempt by the Central Bank to contain inflation and protect the Russian ruble.
