Ruble plummets despite 650bp hike by Bank of Russia
Interest rate increase of 650bp does little to stem currency's precipitous decline
The ruble fell to its lowest level on record hours after the Bank of Russia hiked its key interest rate by 650 basis points (bp) in an attempt to stem the currency's decline.
The central bank raised its repo rate from 10.5% to 17% at around 1am Moscow time, in an emergency meeting after the ruble lost 12% against the US dollar on Monday.
The Bank of Russia said the decision was "aimed at limiting substantially increased ruble depreciation risks and inflation risks" in a statement.
The hike
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