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Russian central bank hikes benchmark rate to 21%
I'm posting this to help counter some of the "Russia is doing great" nonsense that our media sometimes falls for.
Russian central bank hikes benchmark rate to 21%, highest since 2003
MOSCOW, Oct 25 (Reuters) - Russia's central bank hiked its key interest rate by 200 basis points on Friday to 21%, the highest level since the early years of President Vladimir Putin's rule, when Russia was recovering from the chaos that followed the collapse of the Soviet Union.
The move, driven by massive increases in state spending, especially on the military, also brings the rate above the level seen during the market panic at the start of what Russia calls its "special military operation" in Ukraine in February 2022.
The central bank said the hike was needed to fight inflation, currently at 8.4%, adding that inflationary expectations among the public have reached their highest level since the start of the year.
MOSCOW, Oct 25 (Reuters) - Russia's central bank hiked its key interest rate by 200 basis points on Friday to 21%, the highest level since the early years of President Vladimir Putin's rule, when Russia was recovering from the chaos that followed the collapse of the Soviet Union.
The move, driven by massive increases in state spending, especially on the military, also brings the rate above the level seen during the market panic at the start of what Russia calls its "special military operation" in Ukraine in February 2022.
The central bank said the hike was needed to fight inflation, currently at 8.4%, adding that inflationary expectations among the public have reached their highest level since the start of the year.
https://www.reuters.com/markets/rates-bonds/russian-central-bank-hikes-benchmark-rate-21-highest-since-2003-2024-10-25/
Other propagandists point to Russia's GDP growth, but that is illusory. They've switched to a wartime economy where the government is paying large sums directly to businesses. Other inflationary pressures they face come from being short of workers (because of the war itself and people leaving due to the war).