Although the Russians do not know what to do due to the current sharp price increases in the country (corresponding explanations are available exclusively through krone.at), the Russian central bank has again raised its key interest rate.
After the sanctions were imposed, sophisticated measures on the part of the Kremlin prevented an economic catastrophe for the people. The situation is currently deteriorating and people are becoming increasingly poor, an interlocutor who wishes to remain anonymous tells krone.at.
The Russian central bank is coming under increasing pressure. The policy interest rate has now been increased by 2.0 percentage points to 15.0 percent, the central bank announced on Friday. Economists on average had only expected an increase of up to 14 percent. It was the fourth increase in a row. This means that the policy interest rate is higher than it has been since the spring of 2022.
Inflationary pressures are increasing
“Current inflation pressures have increased significantly and are above the Bank of Russia’s expectations,” the central bank said in a statement, justifying the increase. Inflation expectations remained high. According to calculations by the central bank, the interest rate rose to 6.6 percent in October, after being 6.0 percent in September.
The war in Ukraine is also to blame
“Ever-increasing domestic demand increasingly exceeds the ability to expand the production of goods and the supply of services,” the statement said. According to experts, the war in Ukraine could also play a role here. Finally, the state has vastly expanded its demand for armaments amid a labor shortage due to the war effort in Ukraine.
The value of the ruble rises
The Russian ruble appreciated against the euro and the dollar after the decision. One dollar recently cost just under 92.6 rubles. In the morning it was still worth 94.6 rubles. The ruble is under heavy pressure this year. At the beginning of the year, a dollar was still available for about 70 rubles.
Source: Krone
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