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Russia has reoriented its economy for war: Britain's intelligence told of the consequences

Russia has reoriented its economy for war: Britain's intelligence told of the consequences

Russia's economy is "at risk of overheating" due to the growing costs of the war against Ukraine, continued pressure from tougher labor market conditions, and other factors. The aggressor state has reoriented its economy to extend the "CBA," which has had a negative impact on the overall situation.

Inflation in Russia is likely to remain above the 4% target in 2024. This was stated by British intelligence in a report published on November 6 on the Twitter account of the Ministry of Defense of the United Kingdom of Great Britain and Northern Ireland.

Experts reported that inflation in the Russian Federation rose to 6% in September 2023, up from 5.3% in August 2023. Prices for consumers, in particular for food and fuel, are going up.

"High inflation will almost certainly lead to an increase in the cost of financing Russia's war in Ukraine," the report says.

In this regard, the central bank of the aggressor country has raised its key policy rate by two percentage points to 15% per annum. This decision was made on October 27, 2023.

British intelligence emphasized that these are the highest rates since May 2022.

The agency expects the Central Bank of the Russian Federation to maintain high interest rates until at least 2024. This will make loans more expensive for Russians and will also affect the Russian government's debt service costs.

Inflation in Russia is likely to remain above the 4% target.

"Continued high inflation is likely to lead to a decline in government spending in real terms, especially in areas such as social assistance, where spending is growing below inflation. This once again illustrates the reorientation of the Russian economy to foment war in the first place," the British intelligence concluded.

United Kingdom Intelligence Report

As OBOZ.UA wrote earlier, Russian President Volodymyr Putin has put his country's economy on a military footing, and although this has helped to achieve some success, they are all situational, according to Reuters. Moreover, the result of these alleged successes will be the explosion of economic "time bombs" that will have an extremely negative impact on Russia.

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