JRL NEWSWATCH: “Russia Raises Rates Amid Standoff With West, Signs of Covid-19 Economic Recovery; Central bank increases its main interest rate by 50 basis points to 5%” – Wall Street Journal
“… The Bank of Russia raised its main rate to 5% from 4.5% …. [saying] it expected inflation to be higher than previously anticipated, citing a rebound in demand as Russia’s Covid-19 vaccination program progressed. … The central bank signaled concern about other developments …. follow[ing] [U.S. sanctions] bar[ring] U.S. banks and institutional investors from buying new Russian government ruble-denominated bonds …. presented as retaliation for Moscow’s alleged interference in U.S. elections and widespread hacking ….”
The prospect also has been raised of whether U.S. economic growth might push U.S. interest rates higher, leading to capital outflows from developing economies.