Money supply must be provided by production. If you try to cover the budget deficit by issuing unsecured money, prices will rise sharply.
Price increases are normal. But if they reach 50% or more, hyperinflation begins, which leads to a crisis. Effective economic policy does not allow hyperinflation, and the main tool for this is the key rate of the Central Bank. This is the percentage at which the Central Bank issues short-term loans to non-governmental credit organizations.
In the past, it seemed logical to lower the key rate at the beginning of a crisis. This was how the economy was maintained. But the US experience in the 1920s showed that this tactic did not work. It increased belarus mobile database price growth, which eventually led to the Great Depression. The way out of the crisis was the opposite maneuver: raising the key rate, which stopped the outflow of capital. People began to actively open deposits at favorable interest rates. The Bank of Russia took the same measures in the spring of 2022, raising the key rate to 20%.
With a competent economic policy, the Central Bank sets the rate based on inflation data. When prices rise too quickly, the rate rises above the inflation rate. When price growth declines, the rate is lowered below the inflation rate. Following this, deposit and loan rates stabilize, unsecured money and an imbalance between production and the well-being of the population do not arise. This is how the Bank of Russia operates, effectively protecting the economy from a serious crisis.
According to Rosstat, inflation in Russia in 2022 is moderate - 11.94%. This means that the average interest rate on loans in the country should be slightly higher than this value, and on deposits - slightly lower. But the specific figures always depend on the Bank of Russia rate.