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Russia Central Bank Raises Key Rate to 6.5%



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Central Bank of Russia raised its key interest rate to 6.5 percent on Friday to combat persistently high inflation, and said that even after the 100-basis-point rise, which was the largest since late 2014, more rate hikes were attainable, Reuters reports.
Russia began a monetary tightening cycle this year to reign in inflation, which is a delicate topic ahead of the September legislative election, after lowering rates to a historic low of 4.25 percent amid the COVID-19 epidemic in 2020.

In announcing the rate rise, Central Bank Governor Elvira Nabiullina noted that the bank contemplated 50 and 75-basis-point hikes but decided on …

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