At the last meeting of the Board of the Central Bank of the Russian Federation this year, it was decided to leave the key interest rate unchanged \u2013 at the level of 21%. This came as a surprise: most analysts were confident that the regulator would continue to tighten monetary policy and increase the index<\/p>\r\n\r\n\r\n\r\n
In 2023, the Bank of Russia raised the key interest rate five times, and in 2024 three times. The last time was last October, when the rate was simultaneously increased by 2 percentage points, going from 19% to 21%.<\/p>\r\n\r\n\r\n\r\n
Perhaps the regulator\u2019s decision to hold interest rates in check before the New Year was also influenced by businesses, which have repeatedly expressed their dissatisfaction with its actions. A characteristic event is the MP Sergei Mironov, leader of the party \u201cA Just Russia \u2013 For Truth\u201d, who on the eve of the session accused the Central Bank of sabotage and identification with the practices of the IMF.<\/p>\r\n\r\n\r\n\r\n
Russian inflation, which reached 9.5% per year, continues to exert increased pressure on the economy, partly due to the weakening of the ruble. Economic conditions remain tight, with increased inflationary expectations from both the population and businesses, as the Central Bank points out. Despite the expected decrease in inflation in the coming months, a result of tight monetary policies and a freeze in the lending market, the risks remain in favor of inflationary trends.<\/p>\r\n\r\n\r\n\r\n
The Russian economy is far from a balanced growth trajectory. The labor market remains tight, with unemployment at historically low levels and wage increases outpacing productivity. This situation is intensifying inflationary pressures, creating a fragile economic environment. With inflation remaining high and expectations for further appreciation strengthening, the balance of risks in the Russian economy is tilted dangerously towards inflationary pressures.<\/p>\r\n\r\n\r\n\r\n
How will the Central Bank’s decision affect the ruble exchange rate, loans, deposits and the economy as a whole?<\/strong><\/p>\r\n\r\n\r\n\r\n Of course, comparing this situation with the economic data of Western countries, that is, examining the participants in the military and economic conflict, one cannot help but make two observations.<\/p>\r\n\r\n\r\n\r\n 1. <\/strong>The economic measures against the Russian economy, measures that Western leaders so advertise and insist on, have had little impact on the Russian economy. They have had a much greater impact on Western economies.<\/p>\r\n\r\n\r\n\r\n 2. <\/strong>The Russian economy, despite the challenges it is experiencing, is clearly extremely healthy compared to the USA, or Britain, or France and Germany.<\/p>\r\n\r\n\r\n\r\n <\/p>\r\n\r\n\r\n\r\n PS: The Central Bank of the Russian Federation belongs to Russia, unlike the Central Banks of the above countries which are private.<\/p>\r\n","protected":false},"excerpt":{"rendered":" At the last meeting of the Board of the Central Bank of the Russian Federation this year, it was decided to leave the key interest rate unchanged \u2013 at the level of 21%. This came as a surprise: most analysts were confident that the regulator would continue to tighten monetary policy and increase the index … <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[200,59],"tags":[854,237,44,27,48],"class_list":["post-2502","post","type-post","status-publish","format-standard","hentry","category-developing-economies","category-proposed-fiscal-policies","tag-central-bank-of-russia","tag-economy","tag-inflation","tag-interest-rates","tag-monetary-policy"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\r\n