Fitch Ratings expects most central banks in the Commonwealth of Independent States (CIS), Georgia and Ukraine region to tighten monetary policy in response to rising inflationary pressure. According to the agency, the scale of hikes will likely be more moderate compared to the post-2014-2015 cycle, APA-Economics reports citing the agency.
Russia became the latest country in the region to raise rates (by 25bp on March 19). Armenia was the first central bank in the region to hike, starting in December (+125bp cumulative), while Ukraine and Georgia followed suit in March (+50bp).
Russia and Belarus have also pursued administrative measures to temporarily control the increase in food prices.