RUSSIA TO RAISE INTEREST RATES AGAIN.

Russia’s Central Bank will soon order a further increase in its refinancing rate, Bank chairman Sergei Dubinin said yesterday. The refinancing rate was raised from 21 to 28 percent on November 11 and Lombard rates went up to 36 percent on December 1, but the ruble has remained under strong pressure. Both the ruble and Russian stock market rallied in response to yesterday’s news, but government sources warned that a further rise in interest rates would depress investment and could undermine hopes for economic growth in the new year. (Financial Times, December 4)

Moscow, Washington Increase Defense Cooperation.