Friday, November 28, 2008
Russia hikes rates to stop investors fleeing the currency
Russia's central bank increased its key interest rate to 13% from 12% in an attempt to help stop currency losses. The rouble headed for its largest weekly fall in five years, and has fallen approximately 1.9% this week. For the second time this week, Bank Rossii, the country's central bank, widened the rouble's trading band by about 1% or 30 kopeks. Russia's has spent $148bn (£96.4bn) of its foreign currency reserves since August to stop a fall of the rouble.