Russia’s central bank has raised its key interest rate by two percentage points to a record-high 21% in an effort to combat growing inflation.

Russia’s central bank on Friday raised its key interest rate by two percentage points to a record-high 21% in an effort to stem growing inflation as massive government spending on the military amid the fighting in Ukraine strains the economy’s capacity to produce goods and services and drives up workers’ wages.

  • humblebunEnglish
    338·
    2 months ago

    In contrast to what Lemmy or any other internet community is claiming, I do not know economics enough to say what’s happening with the Russian economy for certain.

    But what can I see, is that inflation is not as high as in 2022 or 2014 and Russian authorities have downed the amount of foreign currency a company that sells something for dollars should exchange for roubles. And the war is still going on.

    So… notwithstanding the colossal sanctions, Russia is still standing 🤷🏼‍♂️ but the west has run out of things that they can sanction. Unless you think that potash, ammonia, natural gas, and nuclear fuel would be sanctioned in the near future. In this case, please consult reality. The choice that we’re about to see made is between abandoning Ukraine and military intervention.

    • Flying Squid@lemmy.worldMEnglish
      31·
      2 months ago

      You don’t have to know more than basic high school economics to understand why a 21% interest rate is disastrous for any nation. Russia isn’t special.

      • humblebunEnglish
        234·
        2 months ago

        Russia had 18 for a long time and it didn’t look like a big deal. All these talks look exactly like reversed copium meme from 2022

          • humblebunEnglish
            126·
            2 months ago

            No, this is a good reality check. Still we can see how the rate has dropped from 20 to 8 like nothing

            • Flying Squid@lemmy.worldMEnglish
              24·
              2 months ago

              How can we see that it did that “like nothing” from that chart? Do you think the number is just come up with arbitrarily or something? If that’s the case, why ever change the interest rate at all? Just always keep it at that magic 18% of yours.

              • humblebunEnglish
                124·
                2 months ago

                I was wrong about 18 being “for a long time”. Still, if it’s indeed a measure to regulate inflation, it worked previously, why wouldn’t it work this time?

                  • humblebunEnglish
                    124·
                    2 months ago

                    Don’t play Trump’s card here. I was wrong in one argument, thank you for pointing it out, but overall it doesn’t seem that the claim that “Russia is collapsing due to sanctions and war” has been damaged in any way

            • Flying Squid@lemmy.worldMEnglish
              31·
              2 months ago

              Do you think either of those links makes your 18% claim true?

              Because otherwise I’m not sure why you replied to my comment a second time with those links after showing you that it wasn’t true. Those links also show it isn’t true.