Russia's central bank raised its key interest rates by a quarter-percentage point today, and this was the fourth time this year they have raised. The refinancing rate will be lifted to a 1 1/2 year high of 11 percent as of July 14. The minimum rate for taking out one-day loans from the central bank in repurchase auctions was increased to 7 percent. 11% may seem like a high rate, but with inflation at 15% this still constitutes a negative real interest rate of 4%.
Bank Rossii raised borrowing costs in February, April and June to control price growth after the inflation rose to a 5 1/2 year high of 15.1 percent in June.
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