Russia raises interest rates to 8.5% signalling high borrowing costs

Russia raised interest rates for the first time since emergency measures taken after the invasion of Ukraine almost 17 months ago, delivering a bigger increase than forecast by economists and signaling borrowing costs may rise higher still.
 

The central bank on Friday lifted its benchmark to 8.5 per cent from 7.5 per cent, more than any forecast in a Bloomberg survey. Meanwhile, Russia pounded Ukrainian food export facilities for a fourth day in a row on Friday and practised seizing ships in the Black Sea in an escalation of what Western leaders say is an attempt to wriggle out of sanctions by threatening a global food crisis.
 

 

The attacks on Ukraine’s grain, a major part of the global food chain, followed a vow by Kyiv to defy Russia's naval blockade on its grain export ports following Moscow's withdrawal this week from a UN-brokered safe sea corridor agreement Turkish President Tayyip Erdogan said his planned talks with Russian President Vladimir Putin could lead to restoration of the Black Sea grain initiative, and called on Western countries to consider Russia's demands, Turkish broadcasters reported on Friday.

Romania’s Constanta port, Ukraine’s main alternative route for grain since Russia's withdrawal led to the collapse of the Black Sea shipment deal, has capacity to handle extra cargoes until mid-August, the head of the port's business association said.