Madrid, 6 November. (Europe Press) –
The United Kingdom’s Ministry of Defense announced this Monday that the Russian economy is at risk of “overheating” because of the war in Ukraine and its inflation. September this year.
As explained by the intelligence services of the Ministry of Defense, the increase is due to the increase in the prices of food and fuel, among others. “Higher inflation will almost certainly increase the costs of financing Russia’s war in Ukraine,” they predicted.
“The Central Bank of Russia (BCR) responded by increasing the base interest rate by two percentage points to a new base rate of 15 percent. These are the highest rates since May 2022,” British intelligence maintained.
“The CBR is likely to maintain high interest rates until 2024. This is likely to increase borrowing costs for Russian consumers and affect the Russian government’s debt servicing costs,” they said in their report, published in Your X. Account.
“The Russian economy may be at risk of overheating due to increased demand, large defense spending, and continued pressures from an increasingly tight labor market,” they stressed.
In this situation, Russia cannot keep inflation below the four percent target, which greatly affects spending in other areas such as social security, investments below inflation, explaining how the Russian economy has been “rebalanced” to “fuel”. War above all.”
