- Russia’s economy is stumbling and could be headed for stagnation, economists said.
- That’s because policymakers have timed interest rate hikes “very poorly,” a new report says.
- Russian inflation could hit 5.6% this month, the nation’s own economists forecasted.
Russia’s economy is ailing as policymakers’ attempts to cool down inflation and prop up the ruble are being timed “extremely poorly,” the Russian Center for Macroeconomic Analysis and Short-Term Forecasting said in a report.
The center’s economists pointed to Russia’s recent interest rate hikes, with rates now hovering around 13% to help lower high prices and boost Russia’s sagging currency. Higher rates can help achieve those goals by tightening financial conditions, but that spells bad news for the rest of Russia’s economy, which is already struggling.
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