Russian central bank signals imminent rate hike

Rising inflation: Customers inside a Krasnoe & Beloe store in Moscow. The central bank has raised its key interest rate five times this year as inflation, its main area of responsibility, spiked to near 7.3%. — Bloomberg

MOSCOW: Russia’s central bank is set to hike its key interest rate from 6.75% at its Oct 22 meeting, deputy governor Alexei Zabotkin signalled on Wednesday, as the bank prepares to raise its forecast for inflation, which remains well above the 4% target.

The central bank has raised its key interest rate five times this year as inflation, its main area of responsibility, spiked to near 7.3%, a level last seen in mid-2016, stoked by the weak rouble and globally rising food prices.