Russia Unexpectedly Raises Key Rate Third Time on Ukraine

Russia’s central bank unexpectedly increased borrowing costs for a third time this year as the intensifying conflict over Ukraine and the threat of wider sanctions squeeze the economy and undercut the ruble.

The central bank in Moscow increased its one-week auction rate to 8 percent from 7.5 percent, according to a statement on its website today. None of the economists surveyed by Bloomberg predicted an increase, with 22 of 23 seeing no change and one forecasting a quarter-point cut.