Russia lifts key interest rate to battle collapsing rouble

Russia's Central Bank has raised interest rates overnight to help prop up the ailing Russian currency. 

The Bank of Russia has raised the key rate by 8 per cent in less than two weeks to fight what it describes as 'substantially increased rouble depreciation risks and inflation risks'

Key Interest Rates from the Bank of Russia

The Rouble fell to a record low 64 against the dollar on Monday. 

 

Chart courtesy of Bloomberg, shows USD-RUB for December 15th 2014. 

This followed weeks of decline for Russia's currency as the economically energy dependent country heads towards recession in 2015. 

USD-RUB near time of recent key interest rate changes 

On January 1st 2014, one dollar would have bought you 32.855 roubles. 

The rouble's collapse is largely linked to falling oil prices and western sanctions imposed on Russia for the country's invasion of Crimea, Ukraine.