Russia raises key interest rate again as inflation and exchange rate worries continue

MOSCOW (AP) — Russia’s central bank has raised its key lending rate by one percentage point to 13%, a month after imposing an even larger hike. Concerns about inflation persist and the ruble continues to struggle against the dollar. The increase comes as annualized inflation rose in September to 5.5%. The bank says it expects inflation will reach 6%-7% by the end of the year. In August, the central bank increased the lending rate to 12% — a jump of 3.5 percentage points — as the ruble fell to 100 against the dollar. Although the ruble’s exchange rate improved mildly after the rate hike, it remains around 95 to the dollar, significantly weaker than a year ago when it was trading at around 60 to the U.S. currency.