The surprise Central Bank decision to raise the rate to 17 percent from 10.5 percent came in the early hours on Tuesday in a desperate attempt to prop up the troubled currency, which has fallen sharply in recent weeks as a result of sliding oil prices as well as the pressure from Western sanctions over Russia’s involvement in Ukraine.
The move is intended to make it more attractive for currency traders to hold onto their rubles — doing so gives them a major return, certainly in comparison to many other currencies, such as the dollar, where the interest rate returns are …read more
Source: San Francisco Chronicle
