The Central Bank of the Russian Federation raised the key rate to 21% on October 25.
The discount rate at 21% represents critical level for functioning economics.
The longer it remains at this level, the more tangible the consequences of it will be.
The decline in the solvency of the population is an undoubted fact.
In such conditions, the real sector of the Russian Federation will not even theoretically be able to maintain the previous level of wages for those who, in fact, provide demand and stability of the economy itself.
With the official annual inflation in the Russian Federation at 8.4%, the discount rate is already 21%.
In the Republic of Belarus, with annual inflation of 6%, the discount rate is 9.5%.
The exchange rate correlation of the Belarusian ruble with the Russian ruble is almost 100%, which, in fact, is due to the 100% dependence of the trade turnover of the Republic of Belarus on the Russian Federation.
At the same time, the soft monetary policy in the Republic of Belarus is now contributing to a staggering growth in lending to the consumer sector (population), which today provides its profitability at the expense of the Russian market.
Information for reflection. What will happen next?
