Russia's Central Bank Raises Key Interest Rate To 18 Percent

Russia's central bank raised its key interest rate by 200 basis points to 18 percent, promising further tightening to fight surging inflation. The July 26 hike brings the cost of borrowing to its highest level in more than two years. The key rate was last raised to 20 percent in April 2022, two months after Moscow's full-scale invasion of Ukraine, but was later eased. The bank also forecast inflation would hit 7 percent this year, up sharply from its previous estimate of 4 percent. The Kremlin has been vexed by soaring inflation, due largely to government spending on military expenditures and wages and benefits for soldiers. To read the original story by RFE/RL's North.Realities, click here.