{"id":267198,"date":"2024-12-20T20:57:50","date_gmt":"2024-12-20T20:57:50","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2024\/12\/20\/putins-central-banker-angers-russian-elite-with-rate-hikes\/"},"modified":"2025-06-25T17:09:58","modified_gmt":"2025-06-25T17:09:58","slug":"putins-central-banker-angers-russian-elite-with-rate-hikes","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2024\/12\/20\/putins-central-banker-angers-russian-elite-with-rate-hikes\/","title":{"rendered":"\u201cPutin\u2019s Central Banker Angers Russian Elite With Rate Hikes\u201d"},"content":{"rendered":"

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Or, \u201cwho needs a stinkin\u2019 independent central bank, non-Trump edition.\u201d<\/p>\n

Could this article explain why at 1:30 AM CST as I awaited data on the Russian Central Bank\u2019s interest rate decision\u2026 nothing happened?<\/p>\n

From Bloomberg yesterday<\/a> (before the decision):<\/p>\n

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ong feted as the savior of Russia\u2019s economy in the face of sanctions over the war in Ukraine, central bank Governor Elvira Nabiullina is increasingly under attack from officials who say she\u2019s now destroying it with record high interest rates.<\/p>\n

Nabiullina faces rising criticism within the Russian political and business elite ahead of the bank\u2019s final rate-setting meeting of the year on Friday. Analysts forecast that policymakers may hike the key interest rate to 23% from 21% now, and possibly as high as 24% to curb persistent high inflation.<\/p>\n<\/blockquote>\n

So, here\u2019s the policy rate (red was what most people expected, an increase to 23%):<\/p>\n

\"\"<\/a><\/p>\n

Here\u2019s November official inflation (m\/m):<\/p>\n

\"\"<\/a><\/p>\n

November inflation at 1.4% m\/m is 18.2% at an annualized rate (y\/y is 8.9%).<\/p>\n

If you were wondering what Romir\u2019s FCMG indicated was inflation (see discussion here<\/a>), you are out of luck, as the publication of this series has \u201cceased\u201d<\/a>.<\/p>\n

So, as Mark Sobel<\/a> noted, Russia\u2019s economy looks a lot weaker than the reported (official) statistics indicate.<\/p>\n<\/p><\/div>\n

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