23 Jul 2021 13:55

CBR hikes key rate 100 bp to 6.5% per annum

MOSCOW. July 23 (Interfax) - The Central Bank of Russia (CBR) Board of Directors has decided to hike the key rate by 100 bp to 6.50% per annum.

Most analysts surveyed by Interfax earlier expected the Central Bank to raise its key rate in broad increments of 75-100 basis points (bps).

The Bank of Russia in March 2021 took the first step toward normalizing its monetary policy by raising its key rate by 25 bps - to 4.5% from the historic minimum of 4.25%. In April, the regulator raised it by another 50 bps - To 5%, in June by a further 50 bps - to 5.50%.

Almost a month before the July meeting, the Central Bank sent a signal to the market that the monetary policy normalization cycle would continue, and the rate would be raised again.