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| Russia raises key interest rate to 17% amid rouble decline | Russia raises key interest rate to 17% amid rouble decline |
| (35 minutes later) | |
| The Russian central bank has announced it is hiking its key interest rate to 17% from 10.5%. | The Russian central bank has announced it is hiking its key interest rate to 17% from 10.5%. |
| The bank said the move was to try to ease the rouble's recent descent in value. | The bank said the move was to try to ease the rouble's recent descent in value. |
| The Russian rouble has dropped to a new low against the US dollar, as falling oil prices and Western sanctions continue to weigh on the country's economy. | The Russian rouble has dropped to a new low against the US dollar, as falling oil prices and Western sanctions continue to weigh on the country's economy. |
| It snapped back to 60 roubles per dollar from a low of 67 earlier. | |
| The 60 mark is considered a "psychological barrier" for Russia's national currency, says the BBC's Moscow correspondent, Steve Rosenberg. | The 60 mark is considered a "psychological barrier" for Russia's national currency, says the BBC's Moscow correspondent, Steve Rosenberg. |
| Since the start of the year, the rouble has lost more than 45% of its value against the dollar. | Since the start of the year, the rouble has lost more than 45% of its value against the dollar. |
| Russia's central bank has tried unsuccessfully to stabilise the currency, buying roubles in the markets. | Russia's central bank has tried unsuccessfully to stabilise the currency, buying roubles in the markets. |
| 'Depreciation risks' | |
| It has spent more than $70bn (£44.7bn) supporting the rouble since the start of the year. | |
| "This decision is aimed at limiting substantially increased rouble depreciation risks and inflation risks," the central bank said in a statement. The decision is effective from Tuesday. | |
| The leap in rate follows an increase to the prior rate of 10.5% on 11 December and an increase of 1.5% to 9.5% in October. | |
| The World Bank warned the Russian economy would shrink by at least 0.7% in 2015 if oil prices do not recover. | |
| Raising interest rates has its own risks, as more expensive borrowing can itself slow growth. But it may also stem the tide of money leaving the country. | |
| Oil prices slumped to lows not seen for five-and-a-half years. US benchmark crude West Texas Intermediate traded at $55.91 per barrel, while North Sea Brent crude traded near $60 per barrel. Both markets have fallen by almost half since June. |