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The John Batchelor Show

#Russia: The Bank of Russia at 16% and climbing. Michael Bernstam, Hoover Institution.

The John Batchelor Show

John Batchelor

Society & Culture, Arts, News, Books

4.52.8K Ratings

🗓️ 21 December 2023

⏱️ 13 minutes

🧾️ Download transcript

Summary


#Russia: The Bank of Russia at 16% and climbing. Michael Bernstam, Hoover Institution.
https://www.nytimes.com/2023/12/15/world/europe/russia-interest-rates-inflation.html

1867 Moscow

Transcript

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0:00.0

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0:29.0

com pricing shown. This is CBS, I am the world. I am the world. I'm John Bachelor. Russian Finance, Russian economy.

0:41.0

The sanctions, severe sanctions by the United States and its allies against Russia,

0:47.0

now 22 months into the war.

0:49.4

Michael Bernstom of the Hoover Institution, my guide on these matters joins, and the beginning topic is 16%.

0:58.0

That's new, 16%.

1:00.3

That is the Russian Central Bank's interest charged on loans because Michael a very good evening to you

1:06.7

They keep raising it. I don't know how high it can go is it working 16% because they've been spending rubles as if they're water.

1:15.6

Good evening to you.

1:16.6

Good evening to you.

1:17.6

16% is the policy rate.

1:20.8

It's like our federal funds rate. So all rates in the economy are

1:25.7

aiding up additional percentage points and the going create for regular

1:31.5

businesses in commercial banks is now 25% which is prohibitive.

1:35.8

It is very hard to get credit worthwhile projects because the rate of return on any investment is not as high except for maybe a few startups.

1:46.2

So generally this is punishing for the economy but they are doing this because of inflation.

1:51.7

The official Central Bank inflation rate by the end of the year

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