The Central Bank of Russia announced a rate hike to 20%

The critical rate of the Russian Central Bank has reached a historical maximum. The Central Bank held an emergency meeting, following which it was decided to raise its level to 20%. The regulator’s statement notes that such a high rate will help offset the risks for deposits associated with inflation and devaluation. In addition, such a decision of the Central Bank will support the financial system of the Russian Federation and price stability. The savings of citizens will be protected from depreciation. The statement of the Central Bank also says that the other policy of the regulator will depend on both internal and external conditions. The bank will take into account the forecast for inflation dynamics, as well as for the economy. After the start of the military operation of the Russian Federation in Ukraine, Western countries imposed sanctions, including against the Russian banking system. The European Union announced a ban on any processes related to the Bank of Russia or its behalf on the eve. Also, some Russian banks were disconnected from SWIFT.

Source: xCritical.com