Russian central bank in surprise rate hike amid Ukraine crisis

MOSCOW (REUTERS) - Russian central bank hiked its key lending rate on Monday to 7 per cent from 5.5 per cent due to an increased risk to financial stability and inflation.

The Russian rouble fell to all-time low against the dollar and the euro after President Vladimir Putin declared at the weekend the right to invade Ukraine.

"The decision is directed at preventing risks to inflation and financial stability associated with the increased level of volatility in the financial markets," the central bank said in a statement, without offering any further details.

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