Russian economy in meltdown

Russia going down

Russia's Central Bank has refused to cut interest rates, in a snub to Vladimir Putin. Interest rates were hiked to 21% in October last year, in a bid to curb spiralling inflation.

This was the highest level since the early 2000s, and has sent shockwaves through the business community. Many companies are now struggling to pay back bank loans, as they fight to survive. Putin had urged bank officials to loosen their monetary policy prior to a meeting to review interest rates.

And you are not talking about a democracy!  For banks to go against Putin's wishes may have legal consequences for the bankers.  For a bank year to first is next on the block voluntarily, so they share a home by serious things are!

The EU is then is struggling to fake inflation to 2%..  As of March 21, 2025, Russia's annual inflation rate is 10.2%, with core inflation at 10.2%, and the Bank of Russia expects inflationary pressures to continue declining in the coming months.

Historically this is a significant differences in inflation rates in trading partners.  Historically economies need to get a handle on inflation, or it spirals out of control.

All banks have all adopted the same economic solution, to raise interest rates.  To suck in the capital for other incomes.  But Russia is feeling the consequences of international sanctions.

Which will stop the influx of the outside capital.  Putin's is a billionaire, but the amount of currency devaluation affecting Russia he will soon be only a multi millionaire.

The continuing cast of the Ukraine military action, he's killing the Russian economy.  Expect a sudden outbreak of peace!  So rare shaken get at the American Capital funds.  But the Ukrainian the war and has highlighted to the world, than the second largest military outfit in the world, has been held off by the 44th!

This is a most significant loss of prestige ever for Russia.