Experts skeptical on Russian rate hike after ruble reaches 16-month low, Putin advisor confident
Russia has hiked interest rates to 12% after the ruble fell to its lowest value in 16 months. The currency fell past 100 per dollar on Monday, prompting Russia's central bank to hold an emergency meeting. The Bank of Russia said it decided to raise interest rates from 8.5% to curb inflation, which hit 4.4% in August. Pressure has been mounting due to imports rising faster than exports, the bank said the bank said the current decision would help bring inflation back to four percent in 2024, adding that the next key interest rate meeting would be held on Sept 15, 2023. On Tuesday, the currency recovered slightly to 98 rubles to the dollar. However, PF Capital suggests that interest rate hike may not be effective in the short term and the upcoming 2024 elections may lead to additional spending, further accelerating inflation. Russian President Vladimir Putin's economic adviser, Maksim Oreshkin said the weakness of the ruble stems from the "soft monetary policy" and reassures that the Central Bank possesses the necessary tools to stabilize the situation. __________________ ShanghaiEye focuses on producing top-quality contents. Nobody knows SHANGHAI better than us. Please subscribe to us ☻☻☻ __________________ For more stories, please click ■ What's up today in Shanghai, the most updated news of the city • Playlist ■ Amazing Shanghai, exploring the unknown corners of the city, learning the people, food and stories behind them • Amazing Shanghai and China 淘宝魔都玩转中国 ■ What Chinese people's lives are like during the post COVID-19 period • COVID-19 新冠疫情 ■ Views of foreign scholars on China and its affairs • Voices, Let's Listen! 听她他说 ■ Foreign faces in Shanghai, people living in this city sharing their true feelings • Playlist ■ Mini-docs showing why China is the country it is today • Stories & Documentary 奇闻逸事记录中国 __________________ ☎Leave us messages if you have any suggestions or questions! Thank you!
