Russia’s central bank is set to admit it made a mistake in hiking interest rates by 6.5 percentage points last month by slashing them.
Bank of Russia raised the country’s benchmark rate to 17pc on December 15, just days after raising it to 10.5pc, in a bid to stop a full-blown currency crisis.
However, the move has failed to curb rises in the euro and dollar, and has been met with anger by consumers and businesses after interest rates on bank loans soared.
The move has also failed to curb inflation, which jumped from 8.9pc at the end of November to 11.4pc at the end of December. Economy Minister Alexei Ulyukayev said on Wednesday that he sees inflation reaching 13pc at the end of this month, or slightly higher.
In a statement, Elvira Nabiullina, governor of the Bank of Russia, said: “The board of directors of the Bank of Russia will take a decision on the key rate primarily based on the need to curb inflation, which in the current environment is a priority issue for people and for business.