In Russia, the policy interest rate was increased by 200 basis points, surpassing expectations. The interest rate in the country rose to a record level of 21 percent. The Central Bank of Russia raised the policy interest rate by 200 basis points to 21 percent, reaching an all-time high. The statement from the bank noted that the “current inflation expectations continue to rise for the country’s economy.” The statement also indicated that “domestic demand growth significantly lags behind the possibilities of expanding goods and services supply.” The statement highlighted that the annual inflation rate exceeded expectations in September, reaching 9.8 percent. It was also mentioned that there is a possibility of further interest rate hikes in upcoming meetings. The statement conveyed that to achieve the target inflation rate of 4 percent next year, strict fiscal policy will continue, and the decision to raise the policy interest rate by 200 basis points to 21 percent has been made by the Central Bank of Russia. The statement pointed out that additional budget expenditures and the federal budget deficit have an inflationary effect. After the start of the Russia-Ukraine war, the Central Bank of Russia had previously raised the policy interest rate to a record high of 20 percent. This 200 basis point increase marks the third consecutive increase this year, following the policy interest rate being held at 16 percent from the end of 2023 to July 2024. The Central Bank of Russia had last raised the policy interest rate to 19 percent with a 100 basis point increase on September 13th. While the inflation rate in Russia stands at 9 percent, the Central Bank of Russia aims to reduce this rate to 4 percent.