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Russia's central bank makes huge interest rate hike to try to prop up falling ruble
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A woman drives past a currency exchange office in Moscow, Russia, Monday, Aug. 14, 2023. The Russian ruble has reached its lowest value since the early weeks of the war in Ukraine as Western sanctions weigh on energy exports and weaken demand for the national currency. The Russian currency passed 101 rubles to the dollar on Monday, continuing a more than 25% decline in its value since the beginning of the year. - photo by AP Photo/Alexander Zemlianichenko
TALLINN, Estonia (AP) — Russia’s central bank on Tuesday made a large interest rate hike of 3.5%, a move designed to fight inflation and strengthen the ruble after the country's currency reached its lowest value since early in the war with Ukraine. The decision to bring the key rate to 12% was announced after an emergency meeting of the bank’s board of directors was called a day earlier as the ruble declined. The fall comes as Moscow increases military spending and Western sanctions weigh on its energy exports.