Russia Holds Rate at 14% as Ukraine Strikes Stoke Inflation
Updated
Updated · Bloomberg · Oct 23
Russia Holds Rate at 14% as Ukraine Strikes Stoke Inflation
3 articles · Updated · Bloomberg · Oct 23
Summary
The Bank of Russia left its key rate at 14.00%, signaling a longer-than-expected period of moderately tight policy as inflation pressures intensify.
Ukrainian drone attacks on oil refineries pushed crude-processing rates to multi-year lows and triggered fuel shortages, adding to price growth already running above the central bank’s year-end forecast.
Officials had expected damaged plants to return gradually in the second half, but fresh strikes hit facilities that had recently resumed operations, worsening supply disruptions.
Annual inflation was 6.8% as of Oct. 19, and the central bank still sees 2026 inflation ending at 7.1% to 7.6%, underscoring how the war is feeding domestic price risks.