The Washington PostThe Washington Post

Russian central bank hikes interest rate to 12 percent after ruble drops

By Francesca Ebel

15 Aug 2023 · 5 min read

informed Summary

  1. Russia's Central Bank has raised the country's key interest rate by 3.5 percentage points to 12 percent, following the ruble's significant depreciation to its lowest point in 17 months.

Russia's Central Bank on Tuesday raised the country's key interest rate by 3.5 percentage points to 12 percent - a significant increase that was preceded by the ruble's tumbling to its lowest point in 17 months.

The Russian currency has lost almost a quarter of its value against the U.S. dollar since President Vladimir Putin began an invasion of Ukraine in February 2022, and it has decreased steadily against major world currencies in recent weeks. The country's economy has been battered by Western sanctions, inflation and an acute labor shortage, caused in part by men fleeing abroad to avoid military conscription.

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