Putin admits Central Bank ‘struggling’ to cut rates, warns of rising prices
Russian President Vladimir Putin acknowledged that the Central Bank is “struggling” to lower interest rates without sparking new inflation, warning that a sharp cut would drive up prices. Speaking at the Eastern Economic Forum in Vladivostok, he said, “If inflation overwhelms the economy, nothing good will come of it.”
The remarks come amid concerns over a slowing economy. Sberbank chief German Gref said this week that Russia has entered “technical stagnation,” arguing the current 18% key rate must drop closer to 12% to stimulate recovery, News.Az reports, citing foreign media.
Official data shows annual inflation eased to 8.8% in July, but remains well above the Central Bank’s 4–5% target, with the sharpest increases in food and services.
Putin also urged Russians not to rely on internet “opinions” when judging the economy, after polls showed 58% of citizens cite rising prices as their top concern, compared with 33% who pointed to the war in Ukraine.
Economy Minister Maxim Reshetnikov admitted that inflation and high rates are weighing on growth, underscoring the limits of Moscow’s war-driven expansion.
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