Russian Central Bank Hikes Interest Rates to 17%
The Central Bank of Russia raised interest rates following a record fall in the ruble during trading on Monday. ● The Russian Central Bank announced an immediate hike rise in interest rates to 17% on Monday night in order to protect the currency after the ruble made rapid losses during trading on Monday. The rise comes after a previous announcement made by the Bank on Friday which raised rates from 10.5% to 11.5%. It is the largest single increase since 1998. "This decision is aimed at limiting substantially increased ruble depreciation risks and inflation risks," the Central Bank said in a statement posted on its website. The announcement led to a jump in the value of the ruble on Tuesday morning on the Moscow Exchange. At 10.26 the dollar was trading at 61.47 rubles, down 2.97 cents, while the Euro was 76.50 rubles, down 2.23 cents. The figures represent a strengthening of the currency after Monday's fall, when the dollar rose above the 60 ruble mark for the first time. At close on Monday on the Moscow Exchange the US dollar was 64.45 rubles, up 6.27 rubles, while the euro was valued at 78.87, up 6.59 rubles.
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