Russia's Central Bank raised its interest rate by a full percentage Point as Government military spending in its invasion of Ukraine strains the economy interest rates hiked from 18 to 19% as the country struggles with high inflation in a statement the central bank said growth in domestic demand is still significantly outstripping the capabilities to expand the supply of goods and services Moscow spending since Russia's full-scale invasion of Ukraine in 2022 has challenged the country's ability to produce goods and services and drove up workers wages Russia's economy continues to show solid growth as a result of continuing oil export revenues and government spending on Goods including the military one result is inflation which the central bank has tried to combat with higher rates to make it more expensive to borrow and spend on Goods theoretically relieving pressure on prices this rate rise marks the seventh in over a year