Russia's central bank hikes interest rate to 17%
December 16 , 2014
Russia’s central bank has hiked interest rates by 6.5 percentage points to 17% to prevent the rouble’s freefall.
The drastic action came amid fears that the plunging oil prices would have a severe impact on Russia’s economy, which is dominated by the energy sector. It was decided that emergency action was required to shore up the rouble.
According to the bank, the increase in borrowing costs was important to combat currency depreciation and inflation.