Russian billionaire Oleg Deripaska commented on the increase of the key rate by the Central Bank, calling this decision an attack on the incomes of citizens and the profits of companies. He expressed the relevant criticism in his Telegram-channel on Saturday, March 20.
At the same time, Deripaska drew attention to the fact that the rate hike, in his opinion, pursues not economic, but political goals. In his opinion, the Central Bank “decided to bury the young government of technocrats [премьер-министра Михаила] Mishustin, who is unlikely to be able to survive the new Duma in the fall ”. Deripaska attributed this to the lack of income growth for the poorest Russians amid the global economic recovery.
“Citizens no longer believe in breakfast, and the government will not be able to achieve anything until the monetary policy of the Bank of Russia changes,” the billionaire emphasized.
On Friday, March 19, the Central Bank raised its key rate for the first time since December 2018. It increased by 0.25 percentage points – up to 4.5 percent per annum. At the next meetings of the regulator’s management, the nearest of which will take place on April 23, a further rate hike is possible. The Central Bank expects the annual inflation rate to return to the target level of 4 percent in the first half of 2022.
The appearance of the head of the regulator Elvira Nabiullina may also testify to the tightening of credit policy. At the meeting on Friday, she wore a red jacket and a hawk brooch descending on prey. Hawk is one of the classic signals in the market. With the help of this bird, they describe the tightening of monetary policy, including an increase in the key rate. The opposite signal is given by the pigeon.
An increase in the rate may affect the decrease in inflation and will allow attracting foreign capital, since investors more often prefer to invest in countries with high key rates, which will entail a strengthening of the ruble exchange rate. On the other hand, loans may rise in price, due to which the inflow of capital into the economy within the country will slow down.
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