Russia’s Central Bank Raises Key Rate to Historic 21%, Signals Aggressive Fight to Curb Inflation - The Moscow Times
Russia’s Central Bank Raises Key Rate to Historic 21%, Signals Aggressive Fight to Curb Inflation - The Moscow Times
Russia’s Central Bank raised its key interest rate from 19% to a historic 21% on Friday, taking it even higher than the emergency rate initially introduced after the full-scale invasion of Ukraine as officials scrambled to shield the economy from Western sanctions.
Russia’s Central Bank raised its key interest rate from 19% to a historic 21% on Friday.
Seasonally adjusted price growth last month rose to 9.8% year-on-year from 7.5% in August. Core inflation increased to 9.1% from 7.7% over the same period.
Russia has faced volatile prices (and rising inflation) since it sent troops into Ukraine in February 2022.
Russia is set to spend almost 9% of its GDP on defense and security this year, according to official forecasts.
Most other countries have their post Covid inflation mostly under control, if not in their preferred band, they are considering rate cuts. Obviously war is not conducive to that. Wouldn’t it be wonderful if the cost of war became a problem that hindered it, which was the point of institutions like the eu in the first place.