During an urgent meeting, the Bank of Russia decided to raise the base rate by 3.5 percentage points to 12%, according to the regulator’s website.
«This decision was made in order to lower risks for price stability,» the regulator said in a statement.
The Bank of Russia reports high inflationary pressure. For instance, in August the price surge was 4.4% while the target level was 4%. The inflation has accelerated to 7.6% on an annual basis with an adjustment for seasonality.
«The sharp increase of domestic demand is increasing the inflationary...