New Covid Restrictions Cast Doubt on Bigger Russia Rate Hike

The Kremlin’s new stay-at-home order to curb surging cases of Covid-19 has raised questions about whether the Bank of Russia will deliver a big interest-rate increase at its meeting Friday. “There is a new uncertainty with those non-working days,” said Oleg Vyugin, a former senior central bank official. “I used to think they they will raise by 50 basis points, but now, with the new circumstances, I began to have doubts. It could be 25 basis points as well.” President Vladimir Putin Wednesday approved a government plan to declare Oct. 30 to Nov. 7 as “non-working days” nationally -- with some hard-hit regions starting a week earlier -- as new cases and deaths reach records. The restrictions would be the most sweeping since at least May and could be extended further.