While the Fed Still Fuels the Fire, the Bank of Russia Throws Shock-and-Awe Rate Hikes at Raging “Persistent” Inflation, But US Inflation Not Far Below Russia’s | Wolf Street

In another shock-and-awe move to douse raging inflation that is making no effort at being transitory, the Bank of Russia raised its policy rate by 75 basis points today, to 7.5%, its sixth rate hike, and the largest hike since the 100-basis-point hike on July 23. And it held the door open for more rate hikes.

Since the rate-hike cycle began on March 19 with a surprise 25-basis-point hike, when economists had expected no rate hike, the Bank of Russia has raised its policy rate by 325 basis points, from 4.25% to 7.50%.

The overall inflation rate in Russia soared to 7.4% in September, from 6.7% in August. The Bank of Russia cited a preliminary estimate through October 18 by which inflation jumped further to 7.8%. This is clearly going in the wrong direction.

While the Fed Still Fuels the Fire, the Bank of Russia Throws Shock-and-Awe Rate Hikes at Raging “Persistent” Inflation, But US Inflation Not Far Below Russia’s | Wolf Street