Russia's Shock Decision - Joe Blogs

[TexasTowelie]

Russia’s central bank has just made a shock move — cutting interest rates to 15.5% at a time when inflation is rising again.

Normally, when inflation accelerates, central banks tighten policy. Instead, Moscow has gone the other way.

In this video, I break down why this decision is so significant.

• Inflation is moving back up
• VAT has just been increased from 20% to 22%
• Inflation expectations have climbed to 13.7%
• The ruble has been strengthening
• Corporate profits are under pressure
• GDP growth is slowing

So why cut rates now?

We look at the inflation data, what inflation expectations actually measure, who is being surveyed, and why rising expectations can be more dangerous than inflation itself. We also examine the impact of a stronger ruble on exports, budget revenues and reported profits — and what this tells us about the real state of the Russian economy.

Is this a calculated risk… or a sign of deeper economic stress?

If inflation is rising and expectations are climbing, why is Russia easing monetary policy?

Chapters:
0:00 Intro
0:34 INFLATION
3:08 INTEREST RATES
4:05 EXPECTATIONS
6:24 ECONOMY
7:29 RUBLE
10:16 FORECASTS
16:07 SUMMARY & CONCLUSION