The Russian central bank (CBR) raises the benchmark interest rate to 20%, in an unexpected move on Monday, as the ruble plunges to record lows.
The Bank of Russia has said that “the rate hike is designed to offset increased risks of ruble depreciation and inflation“.
The central bank has added that it is “ready for new actions“.
The CBR has said that Governor Elvira Nabiullina will hold a briefing at 13:00 GMT later on Monday.
Meanwhile, Reuters has reported that Russian Finance Minister to decide whether to order exporters to sell foreign exchange earnings on the market.
The Russian ruble has plummeted more than 40% so far this Mondayin the face of unprecedented Western sanctions against the country’s financial system over President Vladimir Putin’s invasion of Ukraine.
The ruble fell to a record low of 119.00 against the US dollar for one point before recovering to around 82.00.
Source: Fx Street
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