By Paul Hannon
Russia's central bank raised its key interest rate for the fourth time in an effort to contain a surge in inflation as manpower and other resources are diverted to sustain the invasion of Ukraine.
The Bank of Russia lifted its key interest to 15% from 13%, double the size of the move expected by economists. When the central bank started its current series of increases in July, the key rate stood at 7.5%. The series of rate rises, aided by the reintroduction of some capital controls, has helped steady the ruble, which had previously been tumbling.
However, the central bank said consumer prices continue to increase more rapidly than it had expected, while government spending will stay high for longer than previously indicated.
In a statement, the central bank said rates would have to remain high for some time.
"Tight monetary conditions will be maintained in the economy for long," it said.
Write to Paul Hannon at paul.hannon@wsj.com
(END) Dow Jones Newswires
10-27-23 0657ET
