RUSSIAN RATE HIKE STUNNER
Dec 16, 2014, 03:32 IST
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Russia just raised interest rates to 17% from 10.5%.
According to a statement from Russia's central bank (translation), Russia has taken its key interest rate to 17% from 10.5%. The statement said the decision was driven by the need to limit significant devaluation in the ruble and inflation risks.
Last Thursday, Russia hiked rates to 10.5% from 8% in an effort to combat inflation which rose 9.1% year-on-year in November.
This surprise announcement from Russia comes after the ruble got absolutely crushed on Monday, losing more than 10% of its value against the US dollar.
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The ruble fell to below 64 against the dollar; earlier this year, one dollar bought about 35 rubles.
More to come ...