Central Bank Raises Deposit Rate to 3.5%

The Central Bank surprised markets by raising its deposit rate on Monday, with Chairman Sergei Ignatyev citing a weekend decision to lift a grain export ban as a risk factor for inflation. The hike in the deposit rate, the Central Bank’s main tool for influencing money-market rates and liquidity, also reflects concern over capital outflows that have exceeded $50 billion in the past seven months despite oil prices over […]