Kremlin Addresses Inflation Concerns Amid Key Interest Rate Hike

The Kremlin highlighted that every economy deals with challenges, responding to concerns about inflation and an overheating economy. Russia’s central bank raised its key interest rate by 200 basis points to 18%, aiming to tackle persistent inflation. Kremlin spokesman Dmitry Peskov assured that economic indicators remain positive.

The Kremlin emphasized on Friday that every economy faces unique challenges in response to questions about inflation and an overheating economy, ensuring that necessary measures are being implemented in Russia.

In a decisive move, Russia's central bank raised its key interest rate by 200 basis points to 18%, the highest in over two years, to combat persistent inflation and an overheated economy. This decision was announced moments before Kremlin spokesman Dmitry Peskov spoke to reporters, asserting that economic indicators related to growth and development were positive.

Peskov highlighted President Vladimir Putin's repeated praise for the government's and central bank's efforts in managing the economy. He remarked, "The economic development indicators, both sectoral and in terms of GDP growth, are very positive. It's clear that current problems can occur. No economy in the world is immune." Despite facing annual inflation of over 9%, Peskov stated that discussions on the economy's overheating are ongoing, with necessary measures being enacted.

(With inputs from agencies.)