09:12 AM EDT, 09/13/2024 (MT Newswires) -- Russia's central bank (CBR) hiked by 100bps on Friday, taking the policy rate up to 19% that only three out of 13 within consensus had anticipated versus holds for the others, noted Scotiabank.

The key rate has risen by 950bps since just before Russian President Vladimir Putin invaded Ukraine in February 2022 and yet the Russian ruble has still depreciated by over 15% to the US dollar over this period, stated the bank.

Inflation is running at over 9% year over year as a partial consequence to ruble weakness and as such a partial driver of rate hikes. The war is exacting a heavy toll against Russian aggression, according to Scotiabank.