Economic Buzz: Russia Central Bank Hikes Key Rate to 20%

28 Feb 2022 , 03:20 PM

Russias Central Bank raised its benchmark policy rate to 20%, the highest in almost twenty years, from 9.5% on Monday. The rate hike, the central bank said, ?is designed to offset the increased risk of ruble depreciation and inflation.? The rate hike came amid the broadening fallout of Western sanctions over the weekend in retaliation against Moscows invasion of Ukraine. It said it was taking the emergency measure because the Russian economys situation had drastically changed. The bank said that this would allow it to support financial and price stability and protect citizens savings from depreciation. Russia has also ordered companies to sell 80% of their foreign currency revenues, the central bank and the finance ministry said.

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