Russia's central bank has decided to keep its benchmark interest rate at 21% in an effort to combat rising inflation driven by the government's expenditures on the conflict in Ukraine. This decision comes amidst criticism from influential business figures who argue that the high rates are hindering economic activity.
Factories in Russia are operating at full capacity, producing a wide range of goods for military purposes, leading to a labor shortage and increased wages. Additionally, the depreciation of the Russian ruble has resulted in higher prices for imported goods from China, Russia's main trading partner due to Western sanctions.
