Deputy Chairman of the State Duma Committee on Economic Policy Mikhail Delyagin is confident that a high key rate will only accelerate inflation. Lenta.ru writes about this; in the publication, the MP shared his opinion on the impact of the increase in this indicator on the Russian economy.
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“Such a measure will accelerate inflation rather than reduce it, because our situation is not typical. We do not have an excess of money supply, which is what all economic theory is written for, but we do have a shortage of money supply,” the expert says.
In his opinion, in such conditions, an increase in the interest rate is expected to lead to an increase in the cost of loans, which are included in the price of goods. Anyone who can include this indicator in the final cost will do so. This means that the prices of a number of products will rise.
“The interest rate hike is another step towards strangling the Russian economy,” he said.
He directly describes this decision of the Central Bank as a blow to the economy as a whole. According to him, many people will abandon entrepreneurial activity and deposit their money in bank deposits. The interest rate charged on them now is high and will increase in the near future, due to signals from the Bank of Russia. But the interest on deposits that exist even now is already much higher than any normal business can expect.
Recall that on July 26, at a meeting, the Bank of Russia was expected to raise the key rate to 18 percent.
Previously, we talked about how to build an investment portfolio with stable income in unstable times. Oscar Hartmann, an international investor and entrepreneur included in the list of the top 18 business angels in the world, shares his opinion.
Author:
Nikolai Tikhonov
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
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