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Russia’s Rate Increase Fails to Halt Ruble’s Slide to Record

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Russia’s fifth interest-rate increase this year failed to stem the ruble’s worst rout since 1998 as the central bank governor said a bigger move risked exposing the economy to a greater chance of recession.

The Bank of Russia increased its key rate to 10.5 percent from 9.5 percent, matching the median estimate of 34 economists surveyed by Bloomberg. The ruble fell to a record low, dropping as much as 1.6 percent. The central bank stands ready to take unorthodox steps if the situation worsens, Governor Elvira Nabiullina said after the decision, without elaborating.