Russia's central bank is expected to raise interest rates further to combat soaring inflation caused by the war in Ukraine. The move comes as policymakers grapple with balancing economic growth and price stability.
Russia ’s central bank is expected to raise its key interest rate beyond its record of 21 percent on Friday, as policymakers struggle to tame inflation in what Vladimir Putin described as an “overheating” war economy. Elvira Nabiullina, the hawkish governor of Russia ’s central bank , the CBR, is facing an increasingly loud chorus of criticism from officials and oligarchs who say her efforts to rein in inflation are stifling business.
Her persistence in rising rates even as inflation is sliding out of the bank’s control highlights how policymakers have failed to balance irresolvable priorities during the war, according to senior Russian businessmen and economists. “Either you have enormous spending, or a stable foreign exchange rate and a market economy,” a former senior energy executive said. “You have to sacrifice one of those. You can’t have it all at once.” Demand is persistently outpacing supply, and the central bank has a limited toolkit beyond high interest rates to address inflation amid low unemployment and weak productivity. Many economists forecast inflation as high as 10 percent by the end of 2024, driven by the splurge on defence spending and a corresponding boom in the consumer sector. The CBR estimates annual inflation at 9.6, far beyond its target of 4 percent. The rouble has slid about 20 percent since summer lows to trade at about 103 to the dollar, hit by sanctions limiting Russia’s energy exports and ability to transact internationally. Unemployment is hovering around just 2.3 percent as defence manufacturers work in three shifts around the clock, paid by ever-growing budget spending, and the civilian sector struggles to keep up. The economy was receiving “far more money than it can ‘digest’,” the CBR acknowledged in its latest report from early December
Inflation Russia Economy Interest Rates Central Bank
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Australia raises pressure on multinationals with strict tax disclosure lawParliament also passes central bank reform that will set up a new monetary policy board
Weiterlesen »
UK Inflation and Central Bank Votes Impact London MarketsLondon's equity markets experienced volatility as inflation climbed to a March high, prompting investor anxiety over upcoming central bank decisions. The Bank of England is predicted to maintain interest rates, while the Federal Reserve's latest announcement is closely watched.
Weiterlesen »
European Central Bank to abandon crisis-era strategy as inflation fallsChief economist Philip Lane says focus on latest economic data will ebb
Weiterlesen »
Blackpool Central Site Set for Demolition and Global InvestmentBlackpool's former Bonny Street Police Station and magistrates courts will be demolished to make way for potential new developers at the Blackpool Central site. The council will market the 15-acre site globally after the collapse of previous developer Nikal. Demolition will begin in the new year and take up to six months.
Weiterlesen »
£200k search set to begin for new Blackpool Central developerThe site has outline planning permission for three indoor theme parks, a 200-room hotel, restaurants and outdoor entertainment space
Weiterlesen »
Is the Era of Central Bank Independence Ending?With Donald Trump's return to the White House, questions arise about the future of central bank independence, particularly concerning the Federal Reserve. The article discusses the merits of independent central banking and the factors contributing to stable prices during the Great Moderation.
Weiterlesen »