Russia Raises Interest Rate to 21% Amid Inflation Surge

The central bank's decision aims to curb inflation driven by increased military spending and economic imbalances.

The Russian central bank's rate hike to 21% marks the highest level since 2003, surpassing emergency rates set during the Ukraine conflict's onset.
Inflation in Russia has reached 8.6%, more than double the central bank's target, largely due to heavy defense expenditure.
Central Bank Governor Elvira Nabiullina highlighted an imbalance between supply and demand as a key pro-inflationary factor.
High interest rates are affecting business profitability, with warnings from industry leaders about potential widespread bankruptcies.
The International Monetary Fund has revised Russia's growth forecast for 2024 to 3.6%, despite ongoing economic challenges.