Russia’s central bank hiked its main interest rate by 3.5 percentage points to 12% Tuesday after the ruble hit a 17-month low the previous day. The ruble strengthened to 98 to the dollar following the announcement, after weakening to 102 Monday. “The pass-through of the ruble’s depreciation to prices is gaining momentum and inflation expectations are on the rise,” it added. The central bank said the move was intended to steer inflation down to 4% next year. Russia’s currency collapsed in the immediate aftermath of Russia’s full-scale invasion of its neighbor in February 2022, falling as low as 136 to the dollar in March 2022.

Source: CNN August 15, 2023 13:16 UTC