Putin Warns Against Economic Freeze in 'Cryotherapy Chamber'

Russian President Vladimir Putin advised against freezing Russia's economy with restrictive monetary policy. Economists expect the central bank to maintain a 21% interest rate to curb inflation, but concerns about economic stagnation persist. Putin emphasized avoiding excessive cooling, reminiscent of cryotherapy, to ensure planned economic recovery.

Russian President Vladimir Putin has cautioned his economic team against subjecting the nation's economy to policies akin to a "cryotherapy chamber." This analogy comes ahead of the central bank's impending decision on Friday, where it is widely expected to maintain the current interest rate of 21%.

The interest rate, which is at its highest in over 20 years, aims to tame persistent inflation. However, many economists and some government advisers argue that this tight monetary policy is causing stagnation outside the defense sector. Despite consensus on the cooling effect, Putin stressed the importance of avoiding excessive economic chill.

During a "silence week," where the central bank abstains from public commentary on rate decisions, Putin emphasized a balanced approach. Critics argue the central bank's policies are hindering investment. Forecasts predict economic growth falling to 0.5-1.5% by 2025, fueling further debate over monetary strategy.

(With inputs from agencies.)