On September 13, 2024, the Bank of Russia raised its benchmark interest rate by 100 basis points to 19%, signaling a continued tightening of monetary policy despite signs of a potential slowdown in the country's overheating economy.
This decision comes as economists had mixed expectations, with most anticipating a hold rather than an increase. The central bank has indicated that it remains open to further hikes at its upcoming meeting in October, reflecting ongoing concerns about inflation and economic stability.
The implications of this rate hike could have significant effects on global markets, particularly in emerging economies that are closely tied to Russia's economic performance. Investors will be watching closely to gauge how this move might influence capital flows and currency stability in the region.