Russia Central Bank in Surprise Rate Hike Amid Ukraine Crisis
Russia's central bank on Monday raised its main interest rate to 7.0 percent from 5.50 percent in a surprise move that came as concerns mounted over the consequences of intervention in Ukraine for the Russian economy.
The Bank Rossii (Bank of Russia) said the hike would take effect from 0700 GMT Monday and implied the decision was aimed at limiting the knock-on economic effects of the Ukraine crisis.
"The decision is aimed at averting the appearance of risks for inflation and financial stability linked to the increased volatility on financial markets," it said in a statement, without specifically mentioning Ukraine.
03 March 2014, 14:47
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They are expecting sanctions which would devalue their currency. Increasing in grate will make people think twice about selling rubles and will attract foreign investments. But it makes things more expensive for the locals. Expect trouble in Russia.
