Russian central bank raises key rate by 350 basis points to 12% at emergency meeting

ISTANBUL

The Bank of Russia, holding an “unscheduled key rate meeting” on Tuesday raised its key rate by 350 basis points to 12% following the ongoing deterioration in the ruble.

On Monday, the USD/RUB exchange rate exceeded the 100 mark for the first time since a previous downward spike in the early days of the Ukraine war.

The parity was around 75 before the war began in February 2022, after which it hit 134 the following month.

Saying that the rate decision is aimed at limiting price stability risks, the central bank noted: “Inflationary pressure is building up.”