Putin Urges Against Economic Freeze Amidst Interest Rate Debate

Russian President Vladimir Putin warns against restricting the country's economy with overly tight monetary policies as the central bank prepares its rate decision. Despite predictions of maintaining a 21% rate, concerns grow over stagnant growth outside the defense sector with calls for balanced decisions.

Russian President Vladimir Putin cautioned economic officials against placing the economy in a detrimental freeze akin to a 'cryotherapy chamber', as the central bank deliberates on maintaining its key interest rate of 21%—the highest in over two decades.

During a gathering of Russian business leaders, Putin acknowledged the widespread agreement that cooling the economy is inevitable. Yet, he stressed the necessity of executing plans without excessive restraint, drawing parallels with the extreme cold of therapeutic cryotherapy, which can drop temperatures to -140 Celsius.

The central bank's consistent tight monetary policy has stirred criticism from business sectors who argue it has stunted investment, prompting urgent calls for reconsideration. As the central bank abstains from public commentary during its 'silence week', the continuation of current policies is under heavy scrutiny amidst expectations of stalling economic growth.

(With inputs from agencies.)