Russia's Central Bank decided at its board of directors meeting on Friday to raise its key interest rate by 100 basis points to 13%.
The Central Bank said that inflationary pressure in the Russian economy remains high.
"On 15 September 2023, the Bank of Russia Board of Directors decided to increase the key rate by 100 basis points to 13.00% per annum," the statement reads.
The regulator said that significant pro-inflationary risks have crystallized, namely the domestic demand growth outpacing the output expansion capacity and the depreciation of the ruble in the summer months. Therefore, it is required to additionally tighten monetary conditions to limit the upward deviation of inflation from the target and return it to 4% in 2024, according to the bank.
"The return of inflation to the target and its further stabilization close to 4% also implies that tight monetary conditions will be maintained in the economy for a long period," the statement reads.
The rate was raised 100 bps to 8.5% in July, the first rise after six straight decisions to hold the rate, which had been 7.5% since September 2022. The Central Bank hiked the key rate to 12% on August 15.