Russia raises rates, ups reserve ratio

The Central Bank of Russia has hiked rates and its reserve ratio requirements in a bid to curb inflation.

The central bank raised its refinancing rate by 25 basis points to 10.25% last Friday and said that financial institutions must hold more rouble and foreign exchange reserves as a proportion of their total liabilities at the central bank as of March.

The previous time the central bank raised its refinancing rate was in 1998, when it stood at 80%. Since then there have been 18 reductions,