Russia’s financial difficulties at year-end were celebrated in an assessment issued Jan. 3 by the British Ministry of Defense, which gloated that the unexpected Dec. 20 decision of the Central Bank of Russia to keep interest rates at 21%, and not raise them to 23%, “will likely add to the imbalances in the economy due to the inflationary effects of the depreciation, labor shortages and high government spending,” according to an account in Ukrainska Pravda
Newsweek added that the MOD report took note of the fact that “Criticism of high interest rates is growing amongst Russian businesses. However inflationary pressures are also likely intensifying, in part due to the recent depreciation of the ruble.”
