CBR hikes key rate to 20% to reduce depreciation, inflation risks

MOSCOW. Feb 28 (Interfax) - The board of directors of the Central Bank of Russia (CBR) has decided to raise the key interest rate to 20% from 9.5% as of February 28, 2022, the CBR said in a statement.

The CBR noted the radical change in external conditions. "Raising the key rate will make it possible to ensure the increase of deposit rates to a level needed to compensate for increased depreciation and inflation risks. This will make it possible to maintain financial and price stability and protect citizens' savings from depreciation," the CBR said.

The CBR said it will make further decisions on the key rate based on an assessment of risks due to external and internal conditions and how financial markets respond to them, taking into account the actual and anticipated dynamic of inflation relative to the target rate and the development of the economy within the forecast horizon.

The governor of the CBR will make a statement on the results of the extraordinary board meeting at 4:00 p.m. Moscow time.