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In response to
"Biden Taps Penny Pritzker to Drive Ukraine’s Economic Revival"
by
crash davis 😺
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Russia raises interest rates again amid persistent concerns about inflation.
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Russia’s central bank raised interest rates again on Friday, a sign that concern about inflation remains high as the ruble’s value has tumbled, the labor market tightens and the government increases spending to pay for its war effort in Ukraine.
The central bank raised its key rate by a percentage point to 13 percent, a month after increasing rates by 3.5 percentage points — the biggest jump since the early weeks of the war in Ukraine — at an emergency meeting.
The ruble’s value is down significantly against the dollar since the start of the year, which has led to fears of rising inflation and prompted criticism of Russia’s financial authorities, who have quickly reacted to wartime shocks but still face longer-term dilemmas.
Raising interest rates helps cool the economy by making borrowing more expensive. It also should bolster the ruble by raising the returns that investors receive from holding assets denominated in the currency.
The concerns over the ruble and inflation are the latest squall of financial volatility unleashed by Mr. Putin’s 19-month war against Ukraine. The government’s widening budget deficits are also raising concerns about the sustainability of Russia’s intense spending on the war.
— Paul Sonne
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