Russia's Central Bank Takes Drastic Measures to Stabilize Plummeting Ruble

Russia's central bank has implemented a significant interest rate hike in an effort to combat inflation and strengthen the ruble, which has reached its lowest value since the war with Ukraine. The ruble has depreciated by over a third this year due to increased military spending and Western sanctions. While the weaker ruble has allowed Moscow to convert oil revenue into more rubles, the decline has gone too far, prompting the central bank to tighten it up. The rate hike aims to address rising prices and inflation caused by increased demand for imports. Despite challenges, analysts believe that the weaker ruble does not indicate an economic crisis but rather a need for adjustment.