Russia's central bank raises interest rate to 21% to fight inflation

MOSCOW, Russia: Russia's central bank has raised its key interest rate to a record 21 percent to curb inflation, which is driven by heavy government spending, especially on military needs.

The increase, announced on October 25, reflects concerns that demand is outpacing Russia's capacity to produce goods and services, pushing up prices and wages.

According to the central bank's statement, inflation is r