“Such a measure will accelerate inflation, not reduce it. Because our situation is not typical. We do not have an excess of money supply, for which the entire economic theory is written, but we have a shortage of money supply,” the expert says.
In his opinion, under such conditions, the growth of the interest rate will predictably lead to an increase in the cost of loans, which are included in the price of goods. Everyone who can include this indicator in the final cost will do so. And this means that the prices for various products will become higher.
“Raising the interest rate is another step forward in strangling the Russian economy,” he believes.
He directly calls this decision of the Central Bank a blow to the economy as a whole. He thinks that many people may give up entrepreneurial activity and will place their money in bank deposits. The interest on them is high now, and it will grow 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.
Let us recall that on July 26, at a meeting, the Bank of Russia, as expected, raised the key rate to 18 percent.
Earlier we talked about how to assemble an investment portfolio with a stable income in unstable times. Oscar Hartmann, an international investor and entrepreneur from the list of the top 18 business angels in the world, shared his opinion.
Cover photo: GabsonEr /
Source: rb.ru
