MOSCOW: With inflation showing clear signs of picking up, Russia’s central bank on Wednesday launched another initiative to shore up the rouble, offering hard currency loans to help companies and banks service their debts.

Stabilising the rouble, which is one of the world’s worst-performing currencies this year following the slide in oil prices and the sanctions imposed on Russia for its involvement in Ukraine, is a priority for Russia’s monetary authorities.

One key concern over the Russian economy is how much the 50pc or so fall in the rouble this year will ratchet up inflationary pressures — a falling currency makes imports more expensive.

The country’s statistics agency reported on Wednes­day that consumer prices rose 0.9pc last week when the rouble was in freefall — there was clear evidence last week that retailers of imported products, such as electronics and cars, were raising prices in the wake of the rouble’s fall.

Published in Dawn, December 25th, 2014