“Analysts of the Institute of War Study (ISW) suggest that the Kremlin presses on the Central Bank of Russia due to a high interest rate and in order to hide the inflation caused by the war of the Russian Federation in Ukraine. Source: ISW Details: The report states that, according to unconfirmed data, there is a tension between the head of the Russian Central Bank Elvira Nabiullin and the Kremlin because of the high interest rate and monetary policy of Russia during the war.”, – WRITE: www.pravda.com.ua
Source: Isw
Details: The report states that, according to unconfirmed data, there is a tension between the head of the Russian Central Bank Elvira Nabiullin and the Kremlin because of the high interest rate and monetary policy of Russia during the war.
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On March 23, the Russian insider source stated that the Accounting Chamber of the Federation Council (the highest control and audit body of the Russian Federation-Ed.) Recently initiated a check of the Central Bank of Russia in order to check its monetary policy from 2022 to 2024 and the impact of interest rate on inflation, budgetary costs.
The source argued that the investigation is a “actually” attack on Nabiullin. The source claimed that a group of lobbyists from the big Russian business seeks to reduce the interest rate.
“ISW cannot independently check this statement of the internal source and does not observe other reports on probable audit,” the review added.
At the same time, analysts say that Russian inflation is growing due to a full -scale invasion of Russia into Ukraine, and the Russian Central Bank in December 2024 decided to maintain a key interest rate at 21 percent – the highest Russian interest rate since 2003 – as part of the effort to restrain the growing inflation rate.
Literally From the report: “The interest rate of the Central Bank of Russia until 2025 remained relatively conservative, despite significant and increasing inflation pressure.
In recent months, the Kremlin has argued that inflation is approximately 9-10 percent, but these figures are probably much lower than the actual inflation rate, which is probably closer to 20-25 percent.
The current interest rate in Russia is likely to be higher, and the Kremlin probably put pressure on the central bank to keep the rate at 21 percent, while the central bank should increase it to curb inflation. ”
Details: Analysts suggest that Russian ruler Vladimir Putin also tried to shift the blame for increasing inflation to the central bank, including Nabiullin.
Literally From the report: “The audit of the central bank may be part of the Kremlin’s constant efforts to apply political pressure to the bank to prevent further raising the interest rate in excess of the current in 21 percent, to cope with the expectations and disappointments of the Russian business, and to promote the Kremlin’s narrative on Russia’s economic stability.
Continuous manipulation of the Central Bank’s decisions by the Kremlin probably prevents the Russian government from pursuing a reasonable monetary military time. ”
Key findings isw for March 23:
- Representatives of the United States and Ukraine met in Riyadh, Saudi Arabia, on the evening of March 23, to discuss aspects of a temporary moratorium on long-range strikes and a temporary cease cessation of fire in the Black Sea.
- According to unconfirmed data, there is a tension between the head of the Russian Central Bank Elvira Nabiullin and the Kremlin because of the high interest rate and monetary policy of Russia during the war.
- Ukrainian troops advanced near Borova, and Russian – near Toretsk and Pokrovsk.