MOSCOW, December 16 (Sputnik) – The decision by Russia’s Central Bank to raise key rates to 17 percent was necessary and the correct thing to do, ex-Russian Finance Minister Alexei Kudrin said Tuesday.
“The Central Bank’s decision to raise rates to 17 percent in the current conditions was necessary and correct. Government decisions should follow these measures in increasing trust by investors to the Russian economy,” Kudrin said on his Twitter account.
According to official figures from the central bank, the value of the dollar rose from $54.79 on Friday to $56.89 on Saturday, while the euro rose from Friday's $68.29 to $70.53 for Saturday. © Sputnik/ Michail Kutuzov Ruble Falls Further Against Dollar and Euro, Interest Rates Rise On December 16, the Central Bank of the Russian Federation made the largest single interest rate increase since 1998, raising the rate from 10.5 to 17 percent. The institution argued that the decision was aimed at limiting risks of ruble depreciation and inflation.
In recent months, the Russian ruble lost almost half of its value against the US dollar and the euro. Among reasons for the sharp decline economists cite a continuing decline in oil prices, which directly affects the Russian economy. Economists also note the sanctions imposed by the West against Moscow regarding the country's alleged involvement in the Ukrainian crisis – a claim that Kremlin has repeatedly denied.
Poster Comment:
Lowering interest rates and making bank credit available for business and wealth production would make more sense if Russia is to become more self reliant.