Kremlin Confident in Central Bank’s Inflation Control Amid VAT Hike and Economic Pressures

• Russia’s central bank is actively monitoring inflation and taking measures to maintain stability amid rising prices.
• The government increased VAT to 22% to boost the budget due to higher military spending and lower oil and gas revenues.
• The Kremlin is not currently concerned about inflation exceeding the central bank’s 4-5% forecast.
• The central bank has kept interest rates high (currently 16%) to control inflation, despite consumer and business complaints.
• Economists note the VAT hike has accelerated price growth, and the central bank may not cut rates at its next meeting.

Source: globalbankingandfinance.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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