The key rate itself is not inflation. Changing the key rate is usually one of the reactions to inflation. Usually these are expectations from the market. The investor himself is usually already in conditions partly formed on expectations.
I am of the opinion that it is impossible to focus expectations and realities on one point. But probably with a high key rate, the Central Bank expects that the realities will be lower than expectations. This is how the Central Bank implements its monetary policy. Monetary policy is not an order to act that must be unquestioningly followed by oneself or others to the detriment of oneself, a myth or pop culture from which one can lose oneself in self-oblivion, these are conditions dictated by the country's own realities and resources on a certain time horizon created to bring the situation to a targeted, but ultimately to a real consensus.
The Central Bank is ultimately interested in keeping up with the times, in step with other market participants, but at the same time the Central Bank implements its national interests. In the end, I would not be surprised if the monetary policy itself changes. The national currency in this sense has a rigid peg. If we talk about cryptocurrency, then the Central Bank will be able to act more narrowly and target with greater efficiency. Many international assets in their classical form are frozen, nationalized, investors suffer losses. The inability to focus expectations and realities at one point is somewhat reminiscent of the superposition principle in a quantum computer.
Probably, having summed all this up, we close the old era. All that remains is to pay for the wedding for the new one.
Photo: Krylov's Fable "The Monkey and the Glasses", Microsoft Designer
