By Jonathan Davies

The Russian central bank has raised interest rates to 9.5% in an attempt to tackle inflation.

Rates had already risen by 2.5% since the start of the year, and analysts were expecting a 0.5% increase to 8.5%.

But the central bank's previous attempts to bring inflation down by rising interest rates haven't worked.

The sheer weakness of the Russian rouble, as a result of economic sanctions imposed by the EU and US due to the conflict in Ukraine, and the ban on imported foods from the West have forced inflation high.

"If external conditions improve, and a persistent trend for lowering inflation and inflation expectations emerges, the Bank of Russia will be ready to start to ease its monetary policy," the central bank said.

Inflation in Russia is now at 8.4%, a far cry from the UK's 1.2%. And the central bank expects it to remain above 8% until at least March 2015.

The EU and US sanctions are expected to have a huge impact on Russia, with the economy set to stall in the final quarter of the year and the first three months of 2015.

Earlier today, it was announced that the EU had brokered a deal between Russia and Ukraine to resume to supply of gas to Ukraine, which secures the rest of the EU's supply for the winter.

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