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Russia Set to Raise Main Rate as Ruble Rout Risks Stability

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Russia’s central bank will probably raise borrowing costs to avert threats to financial stability as oil prices near the lowest in more than five years and sanctions over Ukraine risk the collapse of the ruble.

The Bank of Russia will increase its key rate to 10.5 percent from 9.5 percent, according to the median estimate of 34 economists surveyed by Bloomberg. Nine analysts predict a bigger increase. Fifty of 77 traders polled by brokerage Tradition project a rate increase of between 100 and 400 basis points. The regulator will announce the decision at about 1:30 p.m. tomorrow in Moscow, followed by a news conference.