The Russian central bank has raised rates to 10.5% from 9.5% in its latest attempt to halt the collapse of the rouble. The currency has been hit by a combination of collapsing oil prices, which the country’s economy is heavily dependent on, and Western sanctions over Russia’s role in supporting anti-government rebels in Ukraine. The central bank has tried to use shock tactics before to limited effect. At the end of October it raised rates from 8% to 9.5% in a widely unexpected gamble that higher rates will halt the rouble’s slide against the dollar and the euro. Unfortunately, while …read more
Source: Business Insider
