Russia has unexpectedly raised its deposit interest rate by 0.25 percentage points to 3.5 percent in a bid to curb inflation.
Russia’s Central Bank said in a statement Monday that the new deposit rate would take effect Tuesday, while other rates including the benchmark refinancing rate would remain unchanged.
The bank said that the decision was taken to address “the high level of inflationary expectations and risks for sustainable growth.”
The move was unexpected after Central Bank chief Sergei Ignatyev said last week the bank was “in no hurry” to raise rates.
Although inflation slowed somewhat in May, it is still at 9.7 percent, far above the government’s target of 7 percent.
The Central Bank raised its refinancing rate from 8 percent to 8.25 percent late April.
