Inflation Numbers in Russia Put Pressure for More Interest Rate Hikes

The Russian ruble rallied today amid predictions that the Russian Central Bank will raise its key interest rate on Friday in an effort to curb rising inflation.

The ruble gained 0.3% against the dollar to 74.80, the largest increase since January 13.

Russian stock index MOEX rose by 1.2% to 3,594.70 after the meeting between Russian President Vladimir Putin and French President Emmanuel Macron. Both sent positive signals that the situation in Ukraine could still be resolved diplomatically.

The monetary policy meeting of the Russian Central Bank is scheduled for Friday.

In 2021, the central bank raised interest rates seven times but failed to curb the rise in inflation, which reached 8.7% in January, its highest level in six years.

Moreover, the devaluation of the ruble to an almost 15-month low has also led to a rebound in inflation. Threats of the West to impose sanctions on Russia pushed the ruble down.

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