Monday, December 15, 2014

WOW Russia's Central Bank Announces a 650 Basis Point Hike in Its Key Interest Rate

In an effort to defend the value of the ruble on foreign exchange markets, the Bank of Russia  has announced that it is increasing its key lending rate to 17.00 percent. This is a hike from the previous level of 10.50 percent.

The ruble has recently hit new lows on foreign exchange markets as demand for the ruble has collapsed in the wake of falling oil prices.

In its announcement the bank said the rate hike " decision is aimed at limiting substantially increased ruble depreciation risks and inflation risks."

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