Go Finance Report in MOSCOW - Russia's Central Bank raised interest rates by 0.25 basis points to eight percent. This is the first rate hike since the economic crisis two years ago.
Quoted by AFP on Sunday (02/27/2011), the Russian central bank said higher interest rates are effective from Monday due to expectations of higher inflation in Russia, and high world oil prices.
Kala economic crisis started to hit the country, the central bank interest rate cuts later dressed in a row over to help out of the economic slowdown.
The Russian government under Prime Minister Vladimir Putin, the last few years working hard to reduce high inflation after the collapse of the Soviet Union.
However, concerns re-struck in recent months after a wave of summer and the fire destroyed more than a quarter of the crop that resulted in reduced supply thus depressing prices.
Russia's central bank said that inflation reached 9.7 percent in the period February 21 when compared with the previous year in which inflation pressures remain significant.
Economic recovery in Russia has shown a trend which contrasts, with industrial production showed a steady growth for several consecutive months, but the investment volume was recorded falls in January. (GoFinance)
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