Tsarizm
Eastern Europe

Russian Central Bank Chief Defends High Interest Rates

Image by duma.gov.ru


Please Follow us on Gab, Minds, Telegram, Rumble,Truth Social, Gettr  

Elvira Nabiullina, the head of the Bank of Russia, is defending her policy of high interest rates; she did so against a hostile audience in parliament. Nabiullina has long taken seriously her responsibility for the Russian currency and the fight against inflation.

The head of Russia’s Central Bank, Elvira Nabiullina, continues to face down her critics. Last week, the Central Bank fought back against business leaders who wanted to curb the  regulator’s independence. This week, Nabiullina defended record high interest rates before a hostile audience in the Russian parliament.

Nabiullina told deputies Tuesday that the current situation (with interest rates hiked to 21 percent last month) is different from previous crises when the Central Bank raised rates sharply but was then able to lower them again quickly. On those occasions, rates went up in response to external shocks and to “prevent inflation from escalating, cope with a run on the banks, and maintain financial stability.” As soon as those aims were achieved, the Central Bank was able to cut interest rates in order to promote economic growth, reported Russian independent news outlet The Bell.

But now, according to Nabiulina, things are different. The economy is stretched, and a labor shortage means productivity can’t be boosted. Without a strict monetary policy, she said, the economy would be vulnerable to stagflation (low growth and high inflation). 

At the same time, the Central Bank is trying to limit the debt burden on large businesses. On Thursday, it published a draft regulation introducing surcharges on new loans, and bonds, for large corporate borrowers, which already have significant debt burdens.

‘NO AD’ subscription for CDM!  Sign up here and support real investigative journalism and help save the republic!

  

Related articles

Ukraine Is The Best Kept Secret In California’s Startup Scene

Tsarizm Staff

FIFA Confirms Investigation Of Croatian Defender Domagoj Vida After Political Video Surfaces…Banned From Match With England?

Tsarizm Staff

Ukraine Thanks Biden For $13 Billion By Attacking Critical US And EU Infrastructure

George Elliason

Leave a Comment

Subscribe to our evening newsletter to stay informed during these challenging times!!