Economist Mikhail Zadornov called the decision of the Central Bank of the Russian Federation to raise the key rate to 21% with inflation at 9% extraordinary.
He explained that the Central Bank took this step, apparently, to curb lending and demand for goods.
Zadornov noted that in this situation the authorities now have two options for action. This is reported by RIA Novosti .
The first, in his opinion, is related to tightening monetary policy in order to limit price growth.
The second option is to limit the volume of lending.
The Central Bank has tightened measures that make it more difficult to obtain loans.
In 2025, it is planned to adjust the requirements for banks' capital.
The economist pointed out that it was not possible to reduce inflation to 5.5–6% in 2024.
Rising inflation leads to higher taxes and budget for 2025.
According to him, high interest rates and inflation increase the costs of servicing the national debt.
Zadornov noted that over the past four years, inflation has sharply exceeded the level of 4 percent.
