Inflation Memory Is What Keeps Russia's Real Rates World-Beating

Russia's central bank is keeping rates high in the midst of recession to shore up its credibility
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What's "moderately tight" in Russia would be choking in most other places on the globe. Except in Belarus.

At 5.5 percent, Russian real interest rates are the second-highest in the world, according to the investment arm of the country’s biggest lender, Sberbank CIB. While most economies with restrictive rates have them because they're expanding briskly, recession-hit Russia would benefit from easier monetary policy. But inflation running at almost twice the central bank's 4 percent target is feeding memories of runaway price growth that started after the collapse of the Soviet Union.

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