How Putin's Move to Save Collapsing Currency Could Backfire
NewsweekJUL 2023
Markets have welcomed this rate increase, which further strengthens the ruble, as Russia's Central Bank has adjusted its expectations and parameters of fiscal policy to meet the faster-than-expected economic growth in the third quarter. The regulator is committed to ensuring that Russia remains on the path of balanced growth.
Though the Kremlin seeks to project the image that Russia is performing better than expected, this isn't the case — inflation is soaring, labor markets are contracting, and Moscow is deepening its dependence on Beijing. The so-called good performance under a full war-financing mode indicates an overheating economy heading into a painful future.