Russia raises key rate

Russia's central bank once again raised its interest rate on Friday as authorities struggle to rein in rapidly growing inflation and soaring food prices.

Inflation has been rising steeply for months, with food prices skyrocketing, in a blow for the many Russians with low incomes and little savings. At a meeting on Friday, the Bank of Russia increased its key rate by 100 basis points to 9.50 per cent.

"Inflation is developing appreciably above the Bank of Russia's October forecast," the bank said in a statement.

Inflation in Russia was at 8.8 per cent, the bank said, adding that it aimed to bring it down to four per cent.

Central banks around the world took measures to prop up economies when the pandemic emerged in 2020, but policymakers plan or have started to tighten their loose monetary policies as inflation has soared.

Russia's central bank chief, Elvira Nabiullina, has called the country's record-breaking inflation a "real disaster" for the country and has urged the government to take action.