April 26, 2014
MAKING THE LEAST OF A LOSING HAND:
Even Without Sanctions, Russia's Economy Is Looking Sicklier Than Ever (Carol Matlack April 25, 2014, Business Week)
Signs of Russia's growing economic distress became even clearer today, as the central bank unexpectedly raised interest rates for the second time since March, while Standard & Poor's cut the country's debt rating to one notch above junk.In lifting the benchmark borrowing rate from 7 percent to 7.5 percent, the bank said it was acting to cool inflation that's now running above 7 percent. But, says economist Tim Ash of Standard Bank in London, "it has nothing to do with inflation. It's all about signaling that the central bank is shoring up its defenses" to strengthen the ruble and stem the flight of capital from the country.Whether the bank can achieve those goals looks doubtful.
The Right thinks Putin is winning.
Posted by Orrin Judd at April 26, 2014 7:36 AM