Russia’s central bank hiked its key interest rate to 12%

Russia’s central bank hiked its key interest rate by 350 basis points to 12%. The extraordinary rate meeting came after the rouble plummeted past the 100 threshold against the dollar on Monday, dragged down by the impact of Western sanctions on Russia’s balance of trade and as military spending soars.

The rouble pared gains after the decision to stand 0.5% weaker at 98.16 by 1056 GMT, but still significantly above lows near 102 on Monday which had not been hit since the early weeks after Russia invaded Ukraine.