Russia’s Central Bank Raises Rates to 19% as Inflation Ticks Up - The Moscow Times

Posted by chromazgympartner@reddit | PrepperIntel | View on Reddit | 28 comments

Interest Rate Increase: Russia's Central Bank raised its key interest rate from 18% to 19%.

Inflationary Pressures: High inflation driven by:

Increased military spending due to the Ukraine war.

Domestic demand exceeding the supply of goods and services.

Monetary Policy:

Seventh rate hike in over a year.

Aimed at cooling the economy and achieving the 4% inflation target.

Economic Impact:

Higher borrowing costs could reduce consumer and business spending.

Increased risk of recession.

Government Spending:

Federal budget increased from 24.8 trillion rubles ($289 billion) in 2021 to 36.6 trillion rubles ($427 billion) in 2024.

State-directed spending less responsive to interest rate changes.

Inflation Forecast:

Expected to exceed previous forecast of 6.5–7.0% for 2024.

Projected to moderate to 4-4.5% in 2025.

Future Outlook:

Next key rate meeting on October 25.

Potential for further rate hikes if inflation remains high.

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Druid_High_Priest@reddit

Sounds like a future prediction of the US to me. We need more exports and less imports.

0Revolt@reddit

Why are people disliking your comment lmao. This isn’t controversial

Vesemir66@reddit

Because huffing farts and spewing lies are not considered reality. Inflation is dropping like a stone.

Acceptable_Bedroom92@reddit

Eventually we will have to pay off our debt !!

Exactly. Even a president who would make the economy better can’t save us at this point. Hopefully more people prepare before it all collapses.

Yeah it’s an election year. Hell the inflation will probably go up even if trump wins

I’m not understanding it either.

MyDogOper8sBetrThanU@reddit

Probably because the fed is about to cut rates because inflation is so low.

AdditionalAd9794@reddit

I don't think the fed cuts rate, especially with the recent jobs report and such. They will hold stay the course.... Though I guess we will know for sure on Wednesday.

Yeah these people are smoking crack if they think the Fed's reports aren't wildly inaccurate at best and intentially misrepresented at worst. We will see either 0 cuts, or cuts so miniscule that MSM will be bragging about it for days to make it seem like the best deal we've ever gotten.

And you know from your dime store economics degree. 😂

It's supposedly gonna be a quarter percentage point, but I don't believe it. Do you think they'd do a token tenth of a point cut?

Independent_Ad_2073@reddit

Unemployment up, inflation down, cpi down, this is exactly the plan all along, now is when they start easing off, 25 points to start, because inflation is still above where they need it to be.

Millennial_on_laptop@reddit

We've already had two rate cuts in Canada and the economies are pretty close together. They were almost in lock step raising rates.

GreeneyedAlbertan@reddit

And they have insane exports as well.

Aren't they the largest oil exporter in the world by far?

slo1111@reddit

Saudis take that honor by 16%-ish compared to Russia's 9% of oil exports which is the same as the US. 2023 numbers

Largest oil producer*

Say-it-aint_so@reddit

No, the United States is

gepinniw@reddit

What’s the most credible estimate for the inflation rate in Russia right now?

are-e-el@reddit

Hmm sounds like Russia needs to end its special military operation

Historically war is good for economies

happlepie@reddit

Not since ww2 for americans.

Bialar_crais@reddit

Only if your on the winning side

The_Mysterious_Mr_E@reddit

and you are the undisputed world champions of all time at that

Germany 1917 and post WW2 Britain says hello

Lithium321@reddit

As long as the government has money to spend and the war is still going, after that there's about 1 example of war being good for economy's.

Can't afford to back down....can't afford to keep going for much longer either, they either pull a win out of their ass or collapse again

sir_jaybird@reddit

I wish, but no high hopes.

Inflation doesn't impede the regime from waging war. It causes annoyance and financial instability for the population, but I don't think Putin cares about that. Other countries like Iran manage to cope with average inflation of 20% of the last half century.