One of the deputy governors of Russia's central bank has described the country's currency crisis as a "nightmare" scenario.
Sergei Shvetsov also admitted that the decision to sharply hike interest rates was a choice between the "very bad" and the "very, very bad".
The Interfax agency quoted Mr Shvetsov saying:
The situation is critical. What is happening now we could not have imagined in a nightmare a year ago. But unfortunately we cannot predict the short term perspectives of our financial markets. Many players are in a difficult position thanks to these events.
Believe me, the choice that the Central Bank council made yesterday was a choice between the very bad and the very, very bad. What is happening today and in recent days will have various consequences.
Russian Prime Minister Dmitry Medvedev held a meeting on Tuesday with top central bank and government officials on the country's financial and economic situation, according to a press release published on the government's website.
The fall in the rouble is driven largely by emotions and a speculative mood, a spokesman for Russian President Vladimir Putin has claimed.
The RIA news agency quoted Dmitry Peskov saying: "It is true that there is turbulence on the market, which can be largely explained by emotions and a speculative mood."
Bank of England governor Mark Carney has appeared to play down the impact of the economic crisis in Russia on the UK.
Speaking at a press conference, he said Russia accounted for only 1.3% of exports last year before sanctions started to bite, while British-owned banks account for 2.6% of Russia's total bank equity.
The first deputy governor of Russia's central bank has said the situation with the country's currency and stock exchange is now "critical".
The bank has today raised interest rates from 10.5% to 17% in a bid to stave off inflation and protect the rouble - but the currency has continued to endure sharp falls against the dollar.
The Chief Secretary to the Treasury, Danny Alexander, has told ITV News he expects further falls in the price of petrol in line with the low world oil price.
The Liberal Democrat MP said today's news of that inflation is just 1.0% is "extremely good news" for British families.
The governor of Russia's central bank says the decision to hike interest rates was designed to "limit the negative effects" of the falling rouble on the Russian economy.
Speaking to the RIA Novosti news agency, Elvira Naibullina said:
Recently we have seen a significant weakening of the national currency. The main reasons for this are the fall in the oil price and the inability of our companies, of our banks, to access sources of international finance. This means the weakening of the currency has a number of effects on the Russian economy.
In order to limit the negative effects of such a fall in the value of the currency, above all on inflation, we took the decision to raise interest rates from 10.5% to 17%. This decision is designed to lower inflation and expected inflation. We have to think about our economy, about our citizens.
Lloyds Banking Group and Royal Bank of Scotland have narrowly passed a Bank of England test to see how lenders would cope with severe economic stress.
The test, using the position of banks and building societies at the end of 2013, found both RBS and Lloyds would be susceptible to such a crisis.
However, improvements and changes to their plans this year meant only the Co-op was required to submit a new plan.
The Co-operative Bank has been ordered to shore up its balance sheet by axing £5.5 billion in loans after it failed a Bank of England stress test.
The Bank found that a severe downturn with house prices plunging 35% would wipe out the Co-op's capital because of the effect on its risky commercial property and sub-prime home loans.