Russian central bank hikes key rate in bid to avoid “stagflation scenario”

Russia’s Central Bank on Friday (Jul. 26) raised its key lending rate to its highest level in more than two years to stem soaring inflation.

The move is intended to impede inflation by increasing the cost of borrowing and encouraging savings.

“Previously, we named four triggers for raising rates. All of them came into effect. First, persistent inflation is increasing. Secondly, consumer activity is not cooling. Thirdly, the positive…