Citing Accelerating Inflation, Russian Central Bank Raises Key Interest Rate
www.rferl.org
Russia's central bank raised its key interest rate to 19 percent from 18 percent, citing a recent acceleration of inflation.
  • Buffalox@lemmy.world
    0·
    2 months ago

    This is one of the economic indicators Russia can’t hide, and it’s not looking good.
    In 2022 when they increased interest rates to 20%, they strengthened the Ruble by a lot, doubling the value of the Ruble.
    But the Ruble has been declining since, and now even with nearly as high an interest rate of 19%, it’s almost as low as the dramatic drop in 2022 that caused the hike to 20%.
    This is the second time in a couple of months, and combined they are a 3% increase in a short time. And the Ruble remains at a low value.

    For anyone in doubt, this is a strong indicator that the Russian economy can’t handle the pressure of the war. Russian wages are losing value fast, and investments are very expensive, so a further decline in the Russian economy is likely. Especially since there is no unemployment to draw growth from, despite the lower real value of wages.

    • duckduckohno@lemmy.world
      0·
      2 months ago

      If Russians elected a log to be president and it stayed in power since 2000, they would have enjoyed a much better economy right now. Allowing a complete lunatic to stay in power is complete lunacy.