Russia opts for a big rate hike, to consider more

The Bank of Russia raised its benchmark on Friday to 18% from 16%, in line with most forecasts. In a statement accompanying the decision, policymakers said they "will consider the necessity of a further key rate increase at its upcoming meetings." "For inflation to begin decreasing again, monetary policy needs to be tightened further," the central bank said. "Returning inflation to the target requires considerably tighter monetary conditions than presumed earlier."