Russia makes drastic rate rise to 17% to stem rouble decline

Russia's central bank dramatically raised its key interest rate from 10.5% to 17% on the 16 December 2014 in an effort to prevent the collapse of the rouble. The currency was under pressure as global oil prices had gone down dramatically during 2014 and Western sanctions over Ukraine began to have an effect.

• Primary Source

ESO: Background information: Russia’s economy is failing, but that gives it a chance to reform http://www.europeansources.info/record/russias-economy-is-failing-but-that-gives-it-a-chance-to-reform/

Website: Bank of Russia (Central Bank of the Russian Federation) http://www.cbr.ru/eng/

Deutsche Welle, 16.12.14: Russia hikes up key interest rate in bid to bolster ruble http://dw.de/p/1E5Jq

The Guardian, 16.12.14: Russian central bank raises interest rate to 17% to prevent rouble’s collapse http://www.theguardian.com/world/2014/dec/15/russia-interest-rate-rise-17pc-rouble-collapse-oil-price

ESO: Key Source: EU sanctions against Russia over Ukraine crisis http://www.europeansources.info/record/eu-sanctions-against-russia-over-ukraine-crisis/

EUObserver, 16.12.14: Russian rouble in free fall over oil price, EU sanctions http://euobserver.com/economic/126934

Sputnik International, 16.12.14: Key Rate Hike to Return Currency Market to Normal in the Long Term http://sputniknews.com/russia/20141216/1015899354.html

BBC News, 16.12.14: Russian rouble in free-fall despite shock 17% rate rise http://www.bbc.co.uk/news/business-30492518

Euro|Topics: Main Focus, 17.12.14: Russia's currency crisis escalates http://www.eurotopics.net/en/home/presseschau/archiv/archiv_dossier/DOSSIER155506-Russia-s-currency-crisis-escalates

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