Late on Monday the CBR announced that it was increasing its key rate by 6.5 percentage points to 17pc.
The emergency move came as a monumental decline in oil prices and continued uncertainty over Ukraine has led the rouble to fall by more than 50pc over the course of the year.
The currency’s slide has reflected a huge loss of confidence in the Russia economy. The state is heavily dependent on oil – oil and gas account for 67pc of exports, and 50pc of government revenues.
The value of that oil has fallen by close to 48pc since its peak in June, dropping below $60 a barrel for the first time since 2009 on Tuesday.
The CBR has said that it expects Russian GDP to fall by as much as 4.7pc in 2015 if oil remains at the $60 a barrel level.
Morgan Stanley said the economy will shrink at a rate of 6pc if crude drops to $50.
The interest rate hike led the rouble to climb for just two hours of Moscow trading, after the currency had suffered its worst one-day fall since the currency crisis of 1998.
SOURCE: Telegraph UK