The Bank of Russia today ratcheted up interest rates to their highest point in five years to stem a sell-off of the ruble that has seen the currency lose 28% against the dollar in four months.
The central bank raised its benchmark repo rate by 150 basis points to 9.5%, an increase of 400bp from February. It also raised rates on overnight loans and foreign exchange swaps from 9% to 10.5%. The changes will take effect from November 5.
The Bank of Russia has spent nearly $30 billion of reserves try