Overview

• Economy Minister Maxim Reschetnikow said the 2.5 percent growth forecast will be lowered soon after warning the slowdown is sharper than expected.
• Sberbank chief German Gref described the second quarter as technical stagnation and said July and August pointed to growth near zero.
• Gref urged a substantial rate cut toward about 12 percent to revive activity, diverging from the current policy stance.
• President Vladimir Putin opposed rapid easing and said the central bank must act very cautiously to prevent inflation from overrunning the economy.
• The Bank of Russia lifted rates to a 21 percent peak before trimming to 18 percent as inflation hovers around 8.79 percent, with analysts noting war-driven defense outlays buoy growth as civilian sectors struggle under sanctions.