Stagflation and monster interest rates

Half of the Russian companies is having the risk of going bankrupt in the next six months.
The Russian economy has major problems due to stagflation and interest rates of 21 %. The economy is shrinking but the inflation stays high. The Russian national bank decided to intervene and raised interest rates to 21 % two weeks ago. The ministry of economy was furious about that decision, but it seems the only way to try to counter the inflation.

Payment problems for millions of people

Approximately 6,5 million Russians are having payment problems for their loans that take a bigger chunk out of their paycheque every month.

Companies don’t invest anymore, because it more interesting to shrink and money in the bank.

This all put together is lethal mix for an economy that can’t take long anymore before a real default is a reality…

Sadly it are always the normal people that get hit first and hardest…

Sincerely,

Pele23

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