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| Russia raises interest rates to 10.5% | Russia raises interest rates to 10.5% |
| (35 minutes later) | |
| Russia's central bank has raised its key interest rate by one percentage point to 10.5% as it steps up the fight to tackle inflation. | Russia's central bank has raised its key interest rate by one percentage point to 10.5% as it steps up the fight to tackle inflation. |
| It comes just six weeks after it raised the rate to 9.5% from 8%. | It comes just six weeks after it raised the rate to 9.5% from 8%. |
| The bank's official website added that it would continue raising the rate "in case of further aggravation of inflation risks". | The bank's official website added that it would continue raising the rate "in case of further aggravation of inflation risks". |
| In its monthly economic update the Bank of Russia also said that, as of 8 December, annual inflation was 9.4%. | In its monthly economic update the Bank of Russia also said that, as of 8 December, annual inflation was 9.4%. |
| A weak rouble and a ban on western food imports has kept inflation high. | A weak rouble and a ban on western food imports has kept inflation high. |
| Meanwhile, the rouble hit new lows after the rates decision, and was trading at 55.45 against the dollar and 68.98 against the euro not long after the bank's announcement. | |
| The rate hike comes a day after the bank admitted it had intervened to support the rouble in foreign currency markets last week, spending a total of $4.53bn (£2.9bn). | |
| It has spent more than $70bn supporting the rouble since the start of the year. | |
| The Bank of Russia also said on Thursday that GDP growth would be weak during 2015-16, as consumer activity weakened. | |
| The World Bank has previously warned that the Russian economy will shrink by at least 0.7% in 2015 if oil prices do not recover. |