You're reading: Bloomberg: Russia defends ruble with biggest rate rise since 1998

Russia took its biggest step yet to shore up the ruble and defuse the currency crisis threatening its stricken economy. In a surprise announcement just before 1 a.m. in Moscow, the Russian central bank said it would raise its key interest rate to 17 percent from 10.5 percent, effective on Dec. 16. The move was the largest single increase since 1998, when Russian rates soared past 100 percent and the government defaulted on debt.

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