Russia Hikes Interest Rates Unexpectedly

“Russia’s central bank unexpectedly increased its benchmark interest rate for the second time this year to cap inflation in the world’s biggest energy supplier.

Bank Rossii raised the refinancing rate to 8.25 percent from 8 percent, it said on its website today. Fifteen of 20 economists in a Bloomberg survey expected no change. Policy makers in Moscow also increased the overnight deposit rate a quarter point to 3.25 percent and the overnight auction-based repurchase rate by the same amount to 5.5 percent. The change is effective May 3. Reserve ratios remained unchanged.”

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