The CEO of Sberbank, Russia’s largest lender, renewed his calls Tuesday for the Central Bank to cut its key interest rate, arguing that policymakers have poured too much cold water on the economy in their fight against inflation driven by military spending.
“An economy simply cannot survive for a prolonged period under the weight of the extremely high real interest rates we’re seeing today,” Herman Gref said during Sberbank’s annual shareholders meeting.
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Gref called it “completely irrational” to use monetary policy to combat inflation caused by what he described as “one-off factors,” including the global energy crunch sparked by the U.S.-Israeli war against Iran, as well as Ukrainian attacks on Russian oil refineries.
“We’ve already overcooled the economy. The rate needs to come down,” Gref said.
At the annual shareholders meeting, the CEO also briefly addressed the war in Ukraine, which he said the business community and the broader Russian public are growing tired of, as it shows no sign of ending.
“I think we are all worried about the same thing. I don’t believe there is anyone in this country whose primary concern is anything other than an end to military hostilities as soon as possible,” Gref said
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Next, the CEO opened a window on the fifth floor to “get some fresh air”, unexpectedly suffered a heart attack, dropped forward and landed in a concrete mixer. Bloody hell.
“But wait, sir! You forgot your Polonium tea!”
At least the radiation didn’t kill him.
I’m all for it. Russia is already having massive inflation issues. Lowering interest rates will only accelerate it.
This war will be won when Russia suffers a large economic collapse and can no longer sustain the industrial output to serve the front.
