Comment on Russians are so nervous about the economy that the central bank took to Telegram to dismiss rumors about deposits being frozen

Russians are so nervous about the economy that the central bank took to Telegram to dismiss rumors about deposits being frozen

Russian central bank governor Elvira Nabiullina, pictured, has hiked the key interest rate to 21% to combat inflation in the country's red-hot, war-driven economy.Vladimir Pesnya/Epsilon/Getty ImagesThe Russian central bank has dismissed rumors of freezing retail bank deposits.Freezing deposits would harm financial stability and undermine trust, the bank said.Last year, the central bank hiked rates to 21% in an attempt at cooling Russia's wartime economy.Russia's central bank has taken to Telegram to publicly dismiss rumors that its citizens' bank deposits may be frozen.The idea that retail bank deposits could be frozen is "absurd" and "unthinkable," the Central Bank of Russia wrote in a Telegram post on Monday."In addition to the fact that this is a gross violation of the right of citizens and companies to manage their assets, such a step will undermine the foundations of the banking system and the financial stability of the country," the regulator wrote.The concerns came after Elvira Nabiullina, Russia's central bank governor, hiked rates to 21% late last year in a bid to cool soaring inflation — an economic pain point President Vladimir Putin has acknowledged.The high interest rates attracted a flood of bank deposits.

 

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