GUARDIAN EUROPE: Two-point rate rise surprises analysts as central bank blames 6.6% inflation on consumer demand
Russia’s central bank has increased interest rates by more than expected, to 15%, after a steep rise in inflation.
The bank blamed the war-torn economy’s limited capacity to respond to an increase in consumer demand for the rise in inflation to 6.6% in October, from 6% in the previous month.
Even with the increase in borrowing costs, inflation is expected to carry on climbing to 7.5% by the end of the year, the central bank said, before falling back to 4% next year. » | Phillip Inman | Friday, October 27, 2023
