Russia's central bank hiked its key interest rate by 350 basis points to 12 per cent on Tuesday, an emergency move to try and halt the rouble'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 Russia's balance of trade and as military spending soars.

The rouble pared gains after the decision to stand 0.3 per cent weaker at 98.00 by 0948 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 Putin'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 Oreshkin'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 decision is aimed at limiting price stability risks.

"The pass-through of the rouble'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 long-lasting impact.

"As long as the war continues it just gets worse for Russia, the Russian economy and the rouble," said Timothy Ash, senior EM sovereign strategist at Bluebay Asset Management.

"Hiking policy rates won’t solve anything — they might temporarily slow the pace of depreciation of the rouble at the price of slower real GDP growth — unless the core problem, the war and sanctions are resolved."

Promsvyazbank analysts said an additional hike may be required if the rouble does not stabilise and that measures to reduce the rouble liquidity surplus were also needed.