"Russia's Central Bank Raises Interest Rates to 16% Amid War and Ukraine Crisis"

The Bank of Russia has raised interest rates for the fifth consecutive time, increasing them from 15% to 16%, in an effort to control war-time inflation caused by the ongoing conflict in Ukraine. The central bank expects annual inflation to slow to 4%-4.5% in 2024, but warns that tight monetary conditions will need to be maintained for an extended period. Despite geopolitical risks and potential impacts on the ruble exchange rate, the governor of the Bank of Russia notes that domestic economic growth is positive and unemployment is at an all-time low.