- Russia’s Finance Ministry says a 2 percentage point VAT increase will not significantly impact inflation.
- A similar VAT hike in 2018-2019 led to only a 0.7% price increase.
- The VAT increase will allow the Central Bank of Russia to ease monetary policy and potentially lower interest rates.
- Easing monetary policy is seen as preferable to financing the budget deficit.
Source: tass.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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