Looks like Russia is in for a bit of a hard time. It is already a very poor nation. Now?
From Market Watch:
Russian central bank lifts interest rates to 20% as ruble plunges over Western sanctions
The Russian central bank more than doubled interest rates to 20% on Monday, as the ruble plunged following further sanctions by Western powers to over the country’s invasion of Ukraine.
The ruble USDRUB, +17.34% hit an all-time low of 119.25 per dollar on Monday, according to FactSet. In volatile, sporadic trade, it was last down 18% to 98.94. The interest-rate hike, meanwhile, ratcheted up the key lending rate from the already high level of 9.5%.
“External conditions for the Russian economy have changed dramatically. An increase in the key rate will make it possible to ensure an increase in deposit rates to the levels necessary to compensate for the increased devaluation and inflation risks. This will help maintain financial and price stability and protect citizens’ savings from depreciation,” said the central bank in a statement.
“The Bank of Russia will make further decisions on the key rate based on an assessment of risks from external and internal conditions and the reaction of financial markets to them, and taking into account the actual and expected inflation dynamics relative to the target, economic development over the forecast horizon,” it added.
And Biden will be taking credit for this in 3... 2... 1...
It must suck to be a legitimate small business owner in Russia. Not connected? Don't even try.
Leave a comment