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BFW 12/15 22:09 Russia Raises Key Rate to 17% Amid Devaluation, Inflation Risks BFW 12/15 22:05 *BANK OF RUSSIA SAYS SEEKS TO STEM DEVALUATION, INFLATION RISKS BFW 12/15 22:03 *RUSSIAN CENTRAL TO HOLD 1-YR FX REPO AUCTIONS WEEKLY BFW 12/15 22:03 *BANK OF RUSSIA TO RAISE LIMIT ON 28-DAY FX REPO AUCTION TO $5B BFW 12/15 22:02 *RUSSIAN RATE INCREASE TO 17% EFFECTIVE DEC. 16 BFW 12/15 22:01 *RUSSIA RAISES KEY RATE TO 17%: CENTRAL BANK WEBSITE STATEMENT
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Russia Increases Key Interest Rate to 17% to Stem Ruble Decline 2014-12-15 22:11:06.528 GMT
By Olga Tanas (Bloomberg) -- Russia’s central bank raised its benchmark interest rate to 17 percent from 10.5 percent at an unscheduled meeting after the ruble fell the most in 16 years. The bank increased borrowing costs to limit the currency’s drop and inflation risks, it said in a statement on its website today. Russia’s central bank raised interest rates for the sixth time in 2014 after more than $80 billion spent from its reserves failed to stop a 49 percent selloff of the ruble, the world’s worst-performing currency this year. President Vladimir Putin, whose incursion into Ukraine’s Crimea peninsula in March prompted the U.S. and its allies to strike back with sanctions, this month called for “harsh” measures to deter currency speculators.
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To contact the reporter on this story: Olga Tanas in Moscow at +7-495-771-7705 or otanas@bloomberg.net
To contact the editor responsible for this story: Balazs Penz at +36-1-881-0227 or bpenz@bloomberg.net