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Russia’s Central Bank Warns of Rate Rises if War Fuels Inflation
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Russia’s central bank Friday surprised markets by warning it may soon have to raise its key interest rate to counter the threat of rebounding inflation as the government keeps spending heavily on its war in Ukraine.
The Bank of Russia left its key interest rate at 7.5% for the third straight month. The pause follows a series of cuts that more than reversed a doubling of the key rate just after Russia’s invasion of Ukraine almost a year ago.
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