For years, Russia’s central bank has skillfully shielded the country’s economy when crisis has loomed, drastically raising interest rates, restricting money movements or taking over ailing banks.
The swift, sharp moves conveyed a clear message that, despite increasingly bitter economic conflicts with the West, economic stability would be maintained at any cost.
The bank raised the benchmark interest rate by 3.5 percentage points to 12 percent.
High interest rates raise the cost of borrowing, inhibiting spending.
But political considerations can push in the opposite direction, for low interest rates that stimulate spending and keep the economy moving.
Persons:
Elvira Nabiullina, Vladimir V
Organizations:
West
Locations:
assertively, Ukraine