Russia’s Central Bank hikes interest rate as inflation soars

MOSCOW (AP) — Russia’s Central Bank has raised its key lending rate to the highest level in more than two years to stem soaring inflation in an overheated economy hit by Western sanctions in response to Moscow’s military action in Ukraine. The bank on Friday raised the rate by 200 basis points to 18.00%, noting that inflation has accelerated and is developing “significantly above” its forecast. It said annual inflation grew from 8.6% in June to 9.0% in July, reflecting an increase in utility costs that took effect starting this month. The bank revised the inflation forecast for this year to 6.5 to 7% and said it might consider further increases in the key rate at its upcoming meetings.