MOSCOW—Russia’s central bank raised its key interest to 18 percent on Friday, the sixth hike in just over a year as it seeks to tame soaring price rises.
Prices have risen fast since Moscow launched its full-scale offensive in Ukraine in February 2022, as massive government spending and skyrocketing wages have pushed up demand across the economy.
“Inflation has accelerated and is running substantially above the Bank of Russia’s April forecast,” the regulator said in a statement. The rate was previously at 16 percent.
“The growth of domestic demand continues to significantly outpace the ability to expand the supply of goods and services. In order for inflation to begin to decline again, additional tightening of monetary policy is required,” it added. The bank also revised up its inflation forecast for 2024 to 6.5 percent to 7 percent.
