Russia to Delay Rate Hikes Despite Rising Inflation

Russia to Delay Rate Hikes Despite Rising Inflation

Russia won?t speed up interest-rate increases after inflation accelerated last month as central bankers seek to avoid choking economic growth, economists said.

The inflation rate climbed to 9.6 percent from 9.5 percent in March, matching the fastest pace since October 2009, a report showed yesterday. The central bank unexpectedly raised its main interest rates last week for a second time this year to rein in price growth. At 8.25 percent, the refinancing rate remains less than the inflation rate.

The central bank and the government must strike a balance between fueling growth, the slowest among the so-called BRIC economies, and keeping inflation from sapping purchasing power and consumer confidence less than a year before parliamentary and presidential elections.

Source: Russia to Delay Rate Hikes Despite Rising Inflation