Bank of Russia hikes interest rates to stem ruble sell-off
Central bank raises key rate to highest level since 2009 as ruble reaches record low against dollar
The Bank of Russia today ratcheted up interest rates to their highest point in five years to stem a sell-off of the ruble that has seen the currency lose 28% against the dollar in four months.
The central bank raised its benchmark repo rate by 150 basis points to 9.5%, an increase of 400bp from February. It also raised rates on overnight loans and foreign exchange swaps from 9% to 10.5%. The changes will take effect from November 5.
The Bank of Russia has spent nearly $30 billion of reserves
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