Russia hikes interest rates to 15% as inflation soars
The Bank of Russia raises rates more than expected to try to lower inflation and boost the rouble.
It's always so strange to me that we don't see the same bombastic support from the tankies over news like this, surely this is another genius move which underscores the futility of Western sanctions, right? Another 5d chess move to bring Ukraine to it's knees, or dismantle the petrodollar, surely? 🙃
You think the kids that sat at the back of the classroom, saying learning math is a waste of time because they'll never need to use it, can form an opinion on this? They see the words "interest rate" and decide this news is completely irrelevant because they can't understand it.
you are aware russia hasnt been socialist for decades right?
russia is a failed proto-fascist state.
Hard for them to respond after they were all banned from Lemmy.world. Really easy to be smug when you have no opposition lol.
Bro people is with the jews now, they provide more impactful videos
The Bank of Russia, the country's central bank, has now raised rates by 7.5 percentage points since July
Holy crap, 7.5% in (basically) 1 quarter. Imagine trying to buy a house and having your loan repayment amount jumping faster than you can get paperwork filed.
So your comment made me go "lol, imagine buying a house in Russia." Meaning my preconceptions were that most in Russia didn't have the means to own a home.
But then I'm like, I don't actually know that, let's check it out.
According to this site home ownership in Russia is over 90%. So what you outlined is a real problem for people there, and changes some of my mental picture of Russian life.
It's complicated by the fact a lot of flats were privatized after the fall of USSR. It's like a boomer situation in the US. Many still live in what their parents claimed.
Hold on, 90%? I guess that would include the whole family in the home as the home owners, because otherwise that is an insane amount of single occupant dwellings.
This number aligns with my personal experience
Offtopic (because it has nothing to do with Russia): in Argentina the inflation of the local currency this year reached at least 100% annual.
But people there use USD fiat for purchasing real estate. And use USD/EUR for saving.
So even if the local currency is a mess, people moves using foreign currency for important transactions.
The Bank of Russia (back when things were so bad they had to halt their stock market) has also forbid people for using more than small amounts of foreign currency. I believe people are limited to the equivalent of 10,000 rubles, or $100 per week.
American moment
I mean you would be really dumb for having a variable rate loan.
I wasn't talking about variable rate loans. I mean by the time you started the process of getting the loan there'd be one interest rate and one expected repayment amount; and by the time you got to signing and locking in the rate it would probably have gone up by about a point and half at that rate.
buT tHE sANcTioNs dOn’T dO ANyThiNg
Part of me is hopeful that this means something will eventually break, but it's also hard to get past some of the initial predictions I was reading when the war first started, that Russia couldn't keep up the war longer than a few months, that Russia was going to collapse at almost any moment. Now it seems like Russia is converting to a permanent wartime economy and that this thing is expected to drag on for years to come. It makes me wonder, even when Putin eventually dies, does Russia just continue on with the war out of sheer momentum, because the next person knows what a shitshow things will turn into if they try to end the war?
when Putin eventually dies, does Russia just continue on with the war out of sheer momentum
My prediction that in such event war will just stop, Shulman's prediction is war will be immidiately forgotten as mass delirium.
"Time will come when Putin's mansions will be shown on federal TV".
I'd love someone knowledgable enough to chime in on this.
Perun is absolutely amazing and goes into complex detail. Any of his videos are top tier.
I think Ekatering Shulman has some videos about war for english-speaking audience.
Though she talks about social and political aspects, not economical.
Not sure this is going to help much when the ruble is tanking internationally, state reserves are frozen, sanctions are still taking effect, and property is being seized from oligarchs, all while a misguided war is being waged at full tilt. Pretty sure it's just putting more pressure on the wrong parts of the economy that are already about to break. But, I'm no economist and Russia's gonna Russia, so whatever.
and property is being seized from oligarchs
Not sure why this is mentioned as tanking ruble.
Fuck ‘em.
Working in logistics I asked my boss a few weeks ago to which of our internal geo clusters does Russia belong to, and he replied exactly "to the fuck 'em cluster". Happily agreed with that statement.
This is the best summary I could come up with:
Russia's central bank has put up its key interest rate to 15% to try to curb inflation and bolster a weak rouble.
The higher-than-expected rate hike of two percentage points raises borrowing costs for the fourth time in a row.
This includes an unscheduled emergency hike in August as the rouble tumbled past 100 to the dollar and the Kremlin called for tighter monetary policy.
Pressure has also been mounting on the Russian economy due to imports rising faster than exports and military spending growing for the Ukraine war.
But rate hikes can only go so far in steadying an economy, and analysts have said Russia could struggle to attract investment due to Western sanctions.
EU leaders introduced a price cap plan to limit the amount Russia earns from its oil exports and the country has also been excluded from Swift, an international payment system used by thousands of financial institutions.
The original article contains 474 words, the summary contains 151 words. Saved 68%. I'm a bot and I'm open source!
