The Russian currency hit a new low against the dollar on Monday as the United States issued stiffer penalties against Russia over the weekend in response to its annexation of Ukraine. Ruble falls to major lows as Russia’s central bank hikes interest rates to 20 percent
In Asian trade, the ruble plummeted to 119.50 per bone, a new low for the currency. It has since returned to a level of roughly 110 per bone.
Meanwhile, Russia’s central bank increased the country’s key interest rate to 20% on Monday, nearly tripling the previous rate of 9.5 percent. Ruble falls to major lows as Russia’s central bank hiked the prices.
The bank stated in a statement that “external conditions for Russian frugality have substantially shifted.” “An increase in the important rate will result in an increase in deposit rates to compensate for the increasing depreciation and affectation risks.”
This is required to maintain fiscal and price stability, as well as to protect citizens’ savings from depreciation. “The bank stated that more important rate decisions would be made in the future “taking into account external and domestic pitfalls, as well as actual and anticipated affectation movements relative to the target and profitable developments over the cast period, as well as factual and anticipated affectation movements relative to the target and profitable developments.
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