Kremlin Tackles Soaring Inflation with Key Rate Hike

The Kremlin announced that inflation remains above target levels. In response, the Russian central bank raised its key interest rate to 18%, the highest in over two years, and plans to continue tightening monetary policy until inflation decreases.

The Kremlin stated on Tuesday that inflation levels have surpassed target expectations and are currently a significant concern. Both the Russian central bank and the government are collaborating to mitigate these inflationary pressures.

Last month, the central bank increased its key interest rate by 200 basis points, reaching 18%—the highest rate observed in over two years.

The central bank has committed to persist in its stringent monetary policy until inflation rates are reduced to acceptable levels.

(With inputs from agencies.)