Russian central bank hikes rates by 350 bp to 12
Bank holds extraordinary meeting after Kremlin rebuke
Rouble had plunged past 100 vs dollar on Monday
Bank says it could hike again if inflation builds

MOSCOW, Aug 15 Reuters Russia39;s central bank hiked its key interest rate by 350 basis points to 12 on Tuesday, an emergency move to try and halt the rouble39;s recent slide after a public call from the Kremlin for tighter monetary policy.

The extraordinary rate meeting came after the rouble plummeted past the 100 threshold against the dollar on Monday, dragged down by the impact of Western sanctions on Russia39;s balance of trade and as military spending soars.

The rouble pared gains after the decision to stand 0.5 weaker at 98.16 by 1056 GMT, but still significantly above lows near 102 on Monday which had not been hit since the early weeks after Russia invaded Ukraine.

President Vladimir Putin39;s economic adviser Maxim Oreshkin on Monday rebuked the central bank, blaming what he called its soft monetary policy for weakening the rouble.

Hours after Oreshkin39;s words, the bank announced the emergency meeting, throwing the currency a lifeline.

Inflationary pressure is building up, the bank said in a statement on Tuesday.

The passthrough of the rouble39;s depreciation to prices is gaining momentum and inflation expectations are on the rise.

Though stopping the rot, analysts largely agreed that the move would not have a longlasting impact.

As long as the war…