Bank of Russia raises key rate by 0.5 pp to 5.5% per annum
"On 11 June 2021, the Bank of Russia Board of Directors decided to increase the key rate by 50 b.p., to 5.50% per annum. Both the Russian and global economies are recovering faster than expected. Inflation is developing above the Bank of Russia’s forecast. The contribution of persistent factors to inflation is increasing due to faster growth of demand compared to output expansion capacity. Over a short-term horizon, this influence is strengthened by price growth in global commodity markets. Taking into account high inflation expectations, the balance of risks has significantly shifted towards proinflationary ones," the regulator said.