**Russia’s Economy in Trouble**
The Russian central bank is keeping interest rates high to try and stop a big problem with the country’s currency, the ruble. This has caused worries for businesses and shows how hard it is becoming for Russia because of its war with Ukraine.
**Businesses Not Happy**
According to British intelligence reports, Russian companies are starting to complain about the high interest rates. They’re worried that this will make it even harder for them to get money and do business. At the same time, prices are likely going up (inflation) because the ruble has lost a lot of value.
**Ruble’s Value Falls**
In November 2024, the ruble was at its lowest level against the US dollar since Russia invaded Ukraine in 2022. It had fallen to 114 rubles per dollar. This is partly because of sanctions on Gazprombank and signs that Russia’s economy is still growing too fast.
**Interest Rates Held Steady**
Even though the central bank said it wouldn’t buy foreign currency until 2025, the ruble started to get a bit better by December 20, 2024. It stabilized at around 100 rubles per dollar. But this has made people think that interest rates will go up again.
**Russian Central Bank’s Decision**
The Russian central bank kept the main interest rate the same – at 21%. This is the highest it’s been since Russia’s full-scale invasion of Ukraine. Experts say this decision could make things even harder for the economy because it can cause inflation, labor shortages, and high government spending.
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