OUCH: Russia’s Central Bank Raises Key Rate to 16% Amid Growing Inflation.

The central bank has been grappling with the economic fallout of the offensive in Ukraine that includes Western sanctions, a surge in government military spending and the call-up of hundreds of thousands of men.

“Current inflationary pressures remain high. Annual inflation for 2023 is expected to be close to the upper bound of the 7.0–7.5% forecast range,” the Bank of Russia said in a statement explaining its decision.

Higher interest rates are designed to sap demand by making it more expensive to borrow money and encouraging consumers and businesses to save, not spend.

Analysts expected the increase as the central bank repeatedly stated its priority to fight inflation, which accelerated to 7.5% in November.

The Bank said it was anticipating “that tight monetary conditions will be maintained in the economy for a long period.”

The exchange rate is seen as a key barometer of Russia’s economic health by politicians, businesses and the population.

Maybe Biden will rejigger his campaign messaging to “At least we aren’t Russia.”