Russia’s central bank announced on Tuesday it increased its key lending rate to 17% with immediate effect to avert a currency crisis.
The rouble on Monday posted its biggest one-day drop versus the US dollar and the euro since 1999. The Russian currency traded 5.22 roubles lower to the dollar at 63.4 and 6.53 rubles lower to the euro at 78.81.
The central bank said in a press release the rate hike“is aimed at limiting substantially increased ruble depreciation risks and inflation risks.”
The shock hike in the central bank’s weekly repo rate – the sixth increase this year – takes the rate …read more
Source: Novinite
