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Russia doubles key interest rate as ruble plunges NHK

Russia's central bank has more than doubled its key interest rate. The move is aimed at cushioning the impact of inflation caused by the collapsing value of the ruble.

The bank raised its policy rate from 9.5 percent to 20 percent on Monday. The rate had been climbing steadily since last year amid rising tensions with western countries and inflationary pressure.

Western countries and Japan said at the weekend they will shut Russian banks out of the SWIFT international settlement system. That prompted traders to dump the ruble, sending it tumbling to a fresh record low against the dollar on Monday.

Meanwhile, Tokyo's benchmark stock index ended the day slightly higher.

The Nikkei Average closed at 26,526, up 0.19 percent from Friday's close. Market sources say investors were waiting to see the outcome of talks between Ukraine and Russia due to start after the market closed.
Summary
Russia's central bank increased its key interest rate from 9.5% to 20%, a move aimed at mitigating inflation due to the falling ruble value. This action follows Western countries and Japan's decision to exclude Russian banks from the SWIFT international settlement system, causing a rapid decline
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ID: 621cad6d-eb7c-4be7-8381-44f835ed5dbd

Category ID: nhk

URL: https://www3.nhk.or.jp/nhkworld/en/news/20220228_33/

Date: Feb. 28, 2022

Created: 2022/02/28 20:09

Updated: 2025/12/09 17:43

Last Read: 2022/02/28 20:09