{"id":138051,"date":"2025-05-28T07:30:08","date_gmt":"2025-05-28T07:30:08","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/138051\/"},"modified":"2025-05-28T07:30:08","modified_gmt":"2025-05-28T07:30:08","slug":"russia-economy-in-meltdown-as-moscow-issues-dire-interest-rates-update-world-news","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/138051\/","title":{"rendered":"Russia economy in meltdown as Moscow issues dire interest rates update | World | News"},"content":{"rendered":"

A top Russian official has issued a dire warning regarding the country’s soaring interest rates<\/a> as its economy continues to struggle. The country’s central bank will meet to set interest rates<\/a> next Friday, and Economy Minister Maxim Reshetnikov urged it to take into account slowing inflation. Its key interest rate has been<\/a> at 21% since October 2024 amid soaring inflation, which has slowed investment alongside a decline in economic support from military spending.<\/p>\n

Reshetnikov said that inflation in recent weeks had been in the 3-4% range when recalculated in annual terms. The economy minister said his department’s forecasts that annual inflation for 2025 will 7.6% is “realistic”. He added: “We expect that May data will consolidate this trend and we of course expect that the central bank will duly take this into account when taking decisions because we also see risks of economic hypothermia<\/a> in the current regime.”<\/p>\n

The economy ministry forecasts economic growth of<\/a> 2.5% this year, while the central bank predicted 1-2%.<\/p>\n

High interest rates<\/a> mean higher borrowing costs for businesses and households, as well as government agencies, potentially slowing economic growth.<\/p>\n

The central bank hiked interest rates<\/a> by 3.5% in August 2023 after Vladimir Putin<\/a>‘s then economic adviser, Maxim Oreshkin, blamed its soft monetary police for weakening the rouble.<\/p>\n

Earlier this year, the Russian president urged officials not to freeze the country’s economy<\/a> with high borrowing costs, as if it were in a “cryotherapy chamber”.<\/p>\n

This comes as significant exporters of Russian goods such as Rusal and Gazprom Neft slashed to amount of metal and oil products they plan to send by rail, as per Reuters<\/a>.<\/p>\n

Businesses in the industrial sector have also raised concerns over high borrowing costs, with some scaling back their investment plans.<\/p>\n","protected":false},"excerpt":{"rendered":"A top Russian official has issued a dire warning regarding the country’s soaring interest rates as its economy…\n","protected":false},"author":2,"featured_media":138052,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7655],"tags":[60207,476,478,332,16490,16491,29402,2044,36461],"class_list":{"0":"post-138051","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-russia","8":"tag-central-bank-policy","9":"tag-inflation","10":"tag-interest-rates","11":"tag-russia","12":"tag-russia-economy","13":"tag-russia-inflation","14":"tag-russia-interest-rates","15":"tag-russian-economy","16":"tag-russian-economy-meltdown"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114584291034763359","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/138051","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=138051"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/138051\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/138052"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=138051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=138051"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=138051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}