The Russian Ruble appreciated against the U.S. dollar in the European session on Friday, as Russia’s central bank raised the key rate by 200 basis points amid stubborn inflation pressures.
The board of directors of the Bank of Russia increased the key rate to 15.00 percent from 13.00 percent. Economists had expected the rate to rise to 14 percent.
Current inflationary pressures have significantly increased to a level above the bank’s expectations, it noted.
Further monetary policy tightening would be required to limit the upward deviation of inflation from target and return it to 4 percent in 2024, the bank added.
The Russian Ruble climbed to more than a 2-month high of 91.65 against the greenback, up from an early 4-day low of 94.57. It is likely to locate resistance around the 89.00 region.