cross-posted from: https://lemmy.sdf.org/post/41651354
Russia’s economy slipped into “technical stagnation” in the second quarter of this year, according to Sberbank CEO German Gref, who on Thursday repeated his past warnings that the Russian Central Bank’s tight monetary policy risked tipping the country into recession.
Speaking at the Eastern Economic Forum, Gref also said that July and August data suggested growth was now approaching zero.
“A main driver, of course, is the key interest rate. According to our internal estimates [at Sberbank], the rate will be around 14% by year-end. Is that enough for the economy to start recovering? In our view, it is not,” the banker added. “Given the current level of inflation, recovery can only be expected when the rate is at 12% or lower.”
[…]