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
    211·
    8 hours 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
      12·
      8 hours 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
        114·
        8 hours 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