@MÖYKKYNEN
Nostivat tänään taas ohjauskorkoa! 13%->15%!
View: https://twitter.com/BOFITresearch/status/1717839051942687079
For the first nine months of 2023, budget expenditures were up by about 10 % y-o-y due to a spending boom in the beginning of the year. The lower-house Duma is currently considering a three-year budget framework for 2024–2026 that calls for large spending increases next year. While the biggest spending increases go to the war effort, the plans also call for increased social spending next year, including a 7.5 % hike in old-age pensions.
INFLATIONARY PRESSURES ON THE RISE
Rapid credit growth combined with growth in government spending and the ruble’s depreciation have stoked inflation. In September, on-month growth in consumer prices reached its highest level since the peak of spring 2022. Consumer prices were up by 6 % y-o-y in September. In recent months, prices of food and petroleum products have risen rapidly.
The CBR raised its key rates by 550 basis points in July-September. The interest rate currently stands at 13 %, its highest level since spring 2022 (when the CBR raised the key rate to 20 % to curb the financial market panic caused by Russia’s invasion of Ukraine and new Western sanctions). Markets expect another hike in the key rate to be announced after the CBR board meets today (Oct. 27).
The Russian Central Bank immediately raised the key rate to 15%.
(Putin tells Russians and the world, inflation is the best in the world - less than 5%. He has been infected by Trump’s claims of being the best in the world.
It is really past 60% in 2023 - in some costs and services.)
View: https://twitter.com/Beefeater_Fella/status/1717915251448954985
