Putin Takes on the Inflation Challenge: A Make or Break Moment for Russia’s Economy

Last week, as Russia’s central bank prepared to raise interest rates, a top executive at a major state bank warned that policymakers were facing a major battle with inflation. This battle, he said, would have a significant impact on the country’s financial institutions and markets. The central bank has been given the go-ahead to maintain tight monetary policy in order to combat rising prices. The heavy spending associated with the war effort has put pressure on prices. This is a critical moment for Russia’s economy, and the outcome of this battle with inflation will have far-reaching consequences.