Posted on 12/16/2023 11:36:15 AM PST by marcusmaximus
Russia's central bank has today raised its key interest rate by 100 basis points to 16%, hiking borrowing costs for the fifth meeting in a row under stubborn inflation pressure from widespread labour shortages, high lending and the weak rouble.
The central bank has now raised rates by 850 basis points since July, including an unscheduled emergency hike in August as the rouble tumbled past 100 to the dollar and the Kremlin called for tighter monetary policy.
The bank said pro-inflationary risks over the medium-term horizon remained substantial and warned that stabilising inflation near its 4% target would require high rates for a long time.
(Excerpt) Read more at rte.ie ...
“widespread labour shortages”
I wonder what could be causing that?
The three 25 year old men in Russia must be getting all the ladies.
The rise in interest rates in the US were the result of large infusions of dollars, to give the appearance of growth. However, there was no real growth happening at all. What was happening was the return of jobs that had been lost due to draconian Covid lock-downs, and are now slowly retuning. But it has been the pent up consumerism that has unleased that sudden rush to spend money which in turn has fueled the rise in inflation. Rise in interest rates has caused a form of deflation, but not on essential goods, but rather on discreationary goods. Thus we now hear that the Fed will once again start lowering interest rates.
RTE is an Irish site. I've never known the Irish to be great financial wizards.
Anecdotally, reports indicate that inflation in Russia is off to the races, and hard not to notice. The price of eggs doubling this year, rents going up rapidly.
A third or a half of the population struggling to get by.
Ya know I find you OK.
Your side is losing.
After a while it’s kind of boring.
Just saying.
Has anyone seen the Black Sea Fleet lately? Sevastopol is looking quite empty these days.
Hugs, and Kizses.😂🇺🇸
Putin 2024🇷🇺🇷🇺
A 16% interest rate is great for senior savers.
Labor shortages = a low unemployment rate and more wages for workers.
Biden and the failed proxy war he's waged have been the best thing that has happened to Russia since the fall of the Soviet Union.
God is truly blessing one of the largest Christian nations on earth.
Idk but we can send um boat loads of biden’s “migrants” to fill the gap.
While we’re worried about our own incompetent President, Russia and China have their own leadership and economic woes.
Send Biden and Yellen over there to straighten it all out.
Although the Russians might consider that an act of war.
Mick Jagger went to the London School of Economics (dropped out before graduating when his music made more than any professor made). Maybe he could give them economic satisfaction when they want to paint it all black.
High interest rates are used to curb inflation, which is an increase in the money supply beyond any increase in productivity. To things do that - one is excessive lending by banks, the other is fiscal policy, i.e. money printing. Highly doubtful that banks under Moscow’s control are doing excessive lending, not at the interest rates that have been running for the last two years.
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