Russia's central bank holds emergency hike to 12% after rouble slump

At an extraordinary meeting the Bank of Russia raised its key rate by 3.5 percentage points to 12%. The decision came after the dollar rose above 100 roubles on 14 August for the first time since March 2022.

The regulator explained the increase by growing inflationary pressure and the need to stabilise prices. Earlier presidential adviser Maxim Oreshkin accused the central bank of pursuing a "soft monetary policy".

The rouble strengthened slightly after the decision, but analysts believe the main reason for its weakness is falling export revenue and rising imports.

The weaker rouble is also felt in neighbouring countries. In Armenia the rouble has fallen to multi-year lows against the dram, reducing the value of remittances from Russia.