RUSSIA RAISES RATES TO 9.5% (STA BREAKING NEWS and ARCHIVES)

by STANews , Friday, October 31, 2014, 14:55

Russia's central bank has raised its key interest rate to 9.5% from 8% as it seeks to tackle inflation.

The 1.5 percentage point increase was higher than expected, with analysts having forecast a rise of 0.5 percentage points.

The bank has already raised rates from 5.5% at the start of the year but the moves have failed to combat inflation.

A weak rouble and a ban on western food imports has kept inflation stubbornly high.

"If external conditions improve, and a persistent trend for lowering inflation and inflation expectations emerges, the Bank of Russia will be ready to start to ease its monetary policy," the central bank said.

The new rate will take effect on 5 November. The last rise was imposed at the end of July.

MORE...

http://www.bbc.com/news/business-29848940