Russia's central bank slashes interest rates to 11% as it tries to tame the rampant ruble

The ruble has soared against the dollar in recent weeks and the central bank slashed interest rates to try to stop it.

An emergency meeting of the Central Bank of Russia was called two weeks early. It was the third rate cut in a month.

The ruble was little changed after the central bank raised its rate.

The ruble fell from around 76 to the dollar to 140 as a result of the war in Ukraine.

The government put in place strict capital controls and the central bank increased interest rates to encourage people to keep their rubles in their bank accounts.

The currency hit a high of around 55 to the dollar earlier this week due to increased revenues from oil and gas exports.

The strong ruble is a problem for Russia's exporters. The government takes some energy taxes in foreign currency and must be converted into US dollars.

At future meetings, the CBR is open to cutting interest rates further. The next decision is due in June.

The strong ruble is a sign that the economy is weathering Western sanctions, according to Russian President Vladimir Putin.

The Russian economy is still challenged by external conditions, according to the CBR.

The central bank cut rates because of signs of a slowdown in inflation, which has gone up since the invasion of Ukraine.

It said that the annual inflation slowed to 17.5% in May from 17.8% in April because of a stronger ruble.

The central bank predicted that inflation will fall to between 5% and 7% in the next two years.

The economists at ING think the Russian economy will shrink by 10% to 15% this year.

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