Russia’s central bank raised interest rates by 350 basis points to 12% during an emergency meeting on Tuesday to slow the ruble’s swiftly depreciation.
On Monday, President Vladimir Putin’s economic advisor, Maxim Oreshkin, published an opinion piece in the Russian state-owned Tass news agency in which he blamed the falling currency and the acceleration of inflation on “loose monetary policy.” The ruble subsequently fell to a value around 102 per dollar.
In response to the rapid decline of the ruble, the government in Moscow called an emergency meeting of the Central Bank of the Russian Federation on Tuesday morning, leading the central bank to reconsider its key interest rate, which had been set at 8.5%.
