Russia Seen Raising Rates as Ruble Plunge Feeds Inflation - Bloomberg

Russia Seen Raising Rates as Ruble Plunge Feeds Inflation - Bloomberg:



"Russia’s central bank will probably increase its benchmark interest rate for the fourth time this year, bringing it to the highest level since it was introduced 13 months ago, to halt a currency run that’s stoking inflation.



The Bank of Russia will raise its key rate to 8.5 percent from 8 percent, according to 22 of 31 economists surveyed by Bloomberg. Two predict a move to 9 percent, with increases of a quarter-point and 75 basis points forecast by one analyst each. Five economists see no change. The central bank will announce its decision at about 1:30 p.m. in Moscow today.



Governor Elvira Nabiullina has moved to tighten policy since the crisis in Ukraine flared in March, increasing borrowing costs to cool inflation expectations and halt the largest capital outflows since the collapse of Lehman Brothers Holdings Inc. in 2008. The ruble gained the most among developing-nation currencies yesterday, rebounding from a record as speculation mounted that the central bank will raise rates."



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