Russia increases interest rate to 9.5 pct from 8 pct

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MOSCOW Oct 31, 2014 - 12:00 am GMT+3

Russia's central bank on Friday said it would raise its interest rates to 9.5 percent from 8 percent, as Western sanctions and falling oil prices sent the ruble plunging.

"The board of directors of the Bank of Russia on October 31 took a decision to raise the key interest rate to 9.50 percent," the central bank said in a statement. The new rate will take effect on November 5. The last hike at the end of July took the rate to 8.0 percent.

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