Lowering the Russian Central Bank’s key interest rate from 21% to 20% will not resolve the country’s economic problems caused by the war and international sanctions.
This was reported by the Center for Countering Disinformation (CCD) under Ukraine’s National Security and Defense Council on Telegram, according to Ukrinform.
The CCD stated that despite the rate cut, Russia’s economic situation remains difficult, and the real impact of such measures will be limited.
“The rate reduction was an attempt to signal that Russia’s economy is improving, but in reality, the Central Bank continues injecting more money into the system than the key rate allows. This means the rate cut is purely formal and does not have a serious impact on the economy,” the center explained.
Moreover, inflation in Russia remains high, and forecasts for the future are very cautious — indicating that no real change is occurring in the economy.
The CCD also emphasized that the rate cut does not address the issues in the business sector. Many businesses, especially those with high debt, are being forced to refinance their obligations at new, much higher rates. This leads to fewer job openings and reduced investment in core sectors of the economy.
Earlier, the CCD reported that due to high interest rates and economic hardships, many companies in Russia are forced to lay off workers to cut costs.
“Therefore, the rate cut is only a temporary measure and cannot solve the systemic economic issues caused by the war, sanctions, and the lack of trust in the Russian currency,” the CCD stressed.
As previously reported by Ukrinform, Russian authorities are attempting to conceal the real extent of the country’s economic downturn caused by the war in Ukraine and are trying to sustain the economy using their remaining reserves.
Source: Ukraine warns Russia’s rate cut won’t heal war-torn economy
