Russia's central bank lifted its benchmark to 8.5% from 7.5%, the first hike in over a year.
Rates are now going up 100 basis points to 8.5% from 7.5%, as policymakers cited inflationary pressure from the ruble's recent slide and worker shortages.
"The increase in domestic demand surpasses the capacity to expand production, including due to the limited availability of labor resources," the central bank said.
And despite Friday's rate hike, the ruble fell 1.6% against the greenback to 90.80.
In addition, the Kremlin's military spending for the war has widened its budget deficit, adding even more inflationary pressure.
Persons:
Vladimir Putin's, Wagner, group's
Organizations:
Service
Locations:
Wall, Silicon, Ukraine, Moscow