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CBR accelerates tightening amid surging inflation

Russia’s central bank (CBR) stepped up the pace of its tightening cycle today with a 100bp interest rate hike, to 8.50%, and the hawkish communications reinforce the message that it will not hesitate to raise interest rates further. We now expect a 75bp interest rate hike in February, although we think there will be enough signs that inflation has stabilised by then to end the tightening cycle there.
Liam Peach Emerging Markets Economist
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