Central Bank of Russia raises discount rate to 20%

The Central Bank of Russia has decided to raise the discount rate to 20% per annum, Report informs referring to the regulator’s message.

"The external conditions for the Russian economy have changed dramatically. An increase in the key rate will ensure an increase in deposit rates to the levels necessary to compensate for the increased devaluation and inflation risks. This will help maintain financial and price stability and protect citizens' savings from depreciation," reads the statement.

The Bank of Russia will make further decisions on the key rate based on an assessment of risks from external and internal conditions and the reaction of financial markets to them, and taking into account the actual and expected inflation dynamics relative to the target, economic development over the forecast horizon.

It is expected that the chairperson of the Central Bank following the meeting of the Board of Directors will make a statement on February 28 at 17:00 (GMT+4).