13.09.2024. / 16:31
MOSCOW – Today, the Russian central bank raised the reference interest rate by a full percentage point, to 19 percent, with the intention of reducing high inflation.
PHOTO: Pixabay
The decision was made at a time when state allocations for the army, due to the war against Ukraine, burden the economy’s capacity to produce goods and services and increase workers’ wages, reports Beta.
The central bank said that growth in domestic demand “continues to significantly outpace opportunities to expand the supply of goods and services.”
She also hinted at the possibility of a new increase in the reference interest rate with the aim of reducing inflation from the current 9.1 percent to the targeted four percent in 2025.
The Russian economy continues to record solid growth, which is the result of continued revenues from oil exports and government spending.
One of the results is inflation, which the central bank is trying to fight against by raising the reference interest rate, which makes borrowing and expenses more expensive, which theoretically eases the pressure on prices.Biznis.rs
Source: www.capital.ba
