Source: ABC News
“Russia’s central bank hiked interest rates to their highest since the Kremlin sent troops into Ukraine more than 2 1/2 years ago, a step aimed at combatting the inflation fuelled by massive government outlays for the military — and by robust spending from Russian consumers in shops. The bank raised its key rate to 19%, just below the level from late February 2022. Then the policy rate reached an unprecedented 20% in a desperate bid by the bank to shore up the ruble and ward off a financial collapse amid sanctions imposed by Western governments. Today’s situation is different: inflation is a sign of an economy overheating from government outlays and consumer demand that are outpacing the economy’s capacity to produce goods and services.” (09/13/24)