Russia Raises Key Interest Rate to 17% amid Rouble Decline

BBC: The Russian central bank has announced it is hiking its key interest rate to 17% from 10.5%.

The bank said the move was to try to ease the rouble's recent descent in value.

The Russian rouble has dropped to a new low against the US dollar, as falling oil prices and Western sanctions continue to weigh on the country's economy.

It snapped back to 60 roubles per dollar from a low of 67 earlier.

The 60 mark is considered a "psychological barrier" for Russia's national currency, says the BBC's Moscow correspondent, Steve Rosenberg. » | Monday, December 15, 2014

Russian Rates Up as Rouble Falls
BBC: Russia's central bank increased its key interest rate to 13% from 12% in an attempt to help stop currency losses.

The rouble headed for its largest weekly fall in five years, and has fallen approximately 1.9% this week.

For the second time this week, Bank Rossii, the country's central bank, widened the rouble's trading band by about 1% or 30 kopeks.

Russia's has spent $148bn (£96.4bn) of its foreign currency reserves since August to stop a fall of the rouble.

The central banks aims to keep the rouble stable against a two-currency basket that is made up of 55% US dollars and 45% euros. Against the dollar, it is down 16% since August. >>> | November 28, 2008

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