World News @lemmy.world MicroWave @lemmy.world 11 mo. ago

Russian central bank jacks up interest rates to 12% at emergency meeting after ruble plunge

www.cnbc.com Russian central bank jacks up interest rates to 12% at emergency meeting after ruble plunge

Russia's central bank on Tuesday hiked interest rates by 350 points to 12% at an emergency meeting, as Moscow looks to halt a rapid depreciation of the ruble currency.

Russia’s central bank on Tuesday hiked interest rates by 350 basis points to 12% at an emergency meeting, as Moscow looks to halt a rapid depreciation of the country’s ruble currency.

The ruble slumped to near 102 to the dollar on Monday, as President Vladimir Putin’s economic advisor, Maxim Oreshkin, penned an op-ed in Russian state-owned Tass news agency that blamed the plunging currency and the acceleration of inflation on the “loose monetary policy” of the central bank.

22 comments

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- By comparison during the height of the inflation issue in the US the fed only hiked it 0.75% at each meeting for a couple meetings
  
  I don't think there's really a comparison, but the US Fed increased the prime rate significantly more than how you worded that. They did it over a year or so depending on how you interpret the data. The rate was increased by 5%, which is more than double, from 3/22 to 8/23.
  
  https://www.jpmorganchase.com/about/our-business/historical-prime-rate
- Jokes on you I worship my central bank shrine every morning.
- 3.5% point*
- I like Polandball, I'm glad to see it for something like 15 years now :)
The solution is to beat all credit to death. Great work everyone, pub?
- Am a finance student from Russia.
  
  12% is fine. It's a temporary measure to keep the currency at bay. It's not great, don't get me wrong, I'd much rather it was at 4-5% as it was in 2020, but it's appropriate given what's happenning with the country.
  
  In comparison, on February 2022 it was 20%, which in simple terms saved the banking system from collapsing, our Cenral Bank is one of not that many agencies that are at least compitent.
  
  It does slow down the economic growth, but trust me, there are way bigger problems than expensive credit when it comes to economic growth. Short-term everything is quite well, but long-term if nothing changes? Oh boy, oh boy.
  
  I don't follow the subject in Russian terms (the US/UK are already confusing to me) but it's interesting to hear what other countries find normal and tolerable. I think it'd be raining men in wall street if we saw rates that high.
  
  Long term problem, I mean, most of the industrialized world loathing Russia and not wanting to trade at all is going to hurt much more than currency instability.
- Putin is planning to push credit out a window.
  
  Don’t believe the stories. The credit will commit suicide
  
  And if that doesn’t work, the finance minister.
  
  Or the poor sod that the finance minister points a finger at.
- Everyone's credit? Oh no. The tzar and his cronies are fine.
  
  The plebs? They don't matter. The propaganda spinners will be going to work soon.

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