Russia's benchmark interest rate rises to 21%...Best since 2013

Russia's central bank raised its key interest rate by 2 percentage points to 21% per annum local time on the 25th in response to continued inflation.

In response to the rate hike, local media reported that it was the highest since 2013, when the benchmark rate was introduced in earnest.

Russia raised its key interest rate to 20% per annum shortly after the invasion of Ukraine in February 2022 and then lowered it in two months, but it has continued to raise its key rate since July last year following inflationary pressure.

The war in Ukraine has led to an inflationary trend in Russia as the government spends a huge amount of its military.

Russia's central bank said it needed to raise its key interest rate to counter inflation, which currently stands at 8.4 percent, and that there was a possibility of further hikes at its December meeting.