The Bank of Russia at an extraordinary meeting decided to raise the key rate to 12% per annum.
“The Board of Directors of the Bank of Russia decided to increase the key rate from August 15, 2023 by 350 bp to 12.00% per annum. This decision was made in order to limit the risks to price stability,” the Central Bank said in a statement.
Earlier, on Monday, August 14, the dollar exchange rate exceeded 102 rubles, the euro – 111 rubles. Initially, the central bank said it did not see the risks to financial stability, but then the regulator announced an unscheduled meeting.
After the regulator’s announcement, the dollar fell below 99 rubles. On Tuesday morning, at the opening of the Moscow Stock Exchange, the rate fell below 93 rubles, but quickly recovered to 96. At 10:30, the dollar was at 101, the euro was above the 110 rubles. After the announcement of the regulator’s decision, the ruble on the stock exchange began to grow against the dollar and the euro.
In early July, the Bank of Russia raised the benchmark rate by 100 basis points for the first time since September 2022, to 8.5% per annum. Prior to this, the Central Bank of the Russian Federation kept the key rate at 7.5% six times in a row.
Author:
Natalia Gormaleva
Source: RB
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