Russia hikes interest rates by 200 bps to 15%, above forecast

Russia’s central bank has raised its key interest rate to 15%, a higher than expected increase of 200 basis points. This is the fourth consecutive rate hike in response to a weak rouble and persistent inflation pressure. The central bank has now raised rates by 750 basis points since July. Inflation is expected to range from 7.0-7.5% in 2023, above the bank’s 4% target. The next rate-setting meeting is scheduled for December 15.