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Ruble grows against Central Bank decision to raise key rate to 7.75%

The Russian Central Bank decided to raise the key rate to 7.75%

MOSCOW, December 14. /TASS/. The ruble began to strengthen against the dollar and the euro on the Moscow Exchange after the Russian Central Bank decided to raise the key rate by 25 basis points to 7.75%.

Thus, the dollar fell by 7 kopecks to 66.37 rubles. Nevertheless, the dollar rate is 0.2% higher than at the close of trading the day before.

The euro dropped by 10.2 kopecks to 74.95 rubles, which is 0.37% lower than on Thursday.

The Central Bank Board of Directors earlier decided to raise the key rate by 0.25 pp to 7.75% per annum. "The decision taken is proactive in nature and is aimed at limiting inflation risks that remain elevated, especially over the short-term horizon. There persists uncertainty over future external conditions, as well as over the reaction of prices and inflation expectations to the upcoming VAT rate increase. The increase in the key rate will help prevent firm inflation anchoring at the level significantly exceeding the Bank of Russia’s target," the regulator said.