Russia’s Economic Misery Deepens

Russia’s Economic Misery Deepens

Russia’s central bank cut interest rates and slashed its growth forecast on Friday. Russia’s central bank cut interest rates by 1% to 14%.

The low oil prices and sanctions have crushed the economy and the ruble plunged 40%.

“The Bank of Russia is caught in a bind.” “Inflation is soaring–it hit 16.7% in February, with food prices jumping by 23% compared to last year.” “Cutting rates could push prices even higher, but leaving them at elevated levels may mean an even deeper and longer recession.

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