Russia’s central bank on Friday raised its key interest rate by two percentage points to a record-high 21% in an effort to stem growing inflation as massive government spending on the military amid the fighting in Ukraine strains the economy’s capacity to produce goods and services and drives up workers’ wages.

  • humanspiral@lemmy.ca
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    23 days ago

    It definitely is not a sign of a healthy economy. It is a measure to keep ruble high, and encourage people to save their rubles.

    Russian economic growth, mostly due to military production spending, has been higher than western countries, even in USD terms because of this interest rate policy to keep ruble high, and the massive war economy.

    While US/Ukraine is 100% responsible for war, there are also Russian elites (like US, the weapons and oil sectors) getting rich from it. As long as Russia eventually wins, this becomes an acceptable theater for them. A war on Iran is also likely seen as a profit opportunity for Russia, instead of something to prevent by say, sinking US aircraft carrier fleets with nukes.

    Every Russian that wants a job has a job, and so that is more important for “stability” than unaffordable new mortgages.

    • naeap@sopuli.xyz
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      23 days ago

      How is Ukraine responsible for a war, when Russia took Crimea without much discussion and afterwards tried/tries to get more?

      Ukraine searching for help isn’t a reason for a war. Entering another country is starting a war, and that’s what Russia did

        • foggenbooty@lemmy.world
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          23 days ago

          OK buddy. At the end of the day no matter what you believe, Russia invaded another country first and there’s nothing you can say that will change that. While the US is FAR from blameless in regard to foreign meddling, you are absolutely on the wrong side of history.

        • Nofearfrontier@lemmy.world
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          22 days ago

          You better save that ruble, once they don’t need you to spew non sense on the internet, you going to the front.

          • humanspiral@lemmy.ca
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            22 days ago

            Very substantive retort. It is only the people against war that have to be paid for it. The pro war demons are all in it for love.

              • barsquid@lemmy.world
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                22 days ago

                I think they’re trying to say that, because they have to be paid to praise one country’s completely unprovoked invasion of another, therefore they are a better person than us, who, unpaid, say Ukraine is in the right, therefore we “love war.” It is a weird fucking flex.