Story perspectives

Russia Cuts Interest Rate Amid Economic Slowdown and Inflation

9/13/2025

Summary

Story summary

Russia's central bank lowered its key interest rate from 18% to 17% due to rising inflation and an economic slowdown linked to the Ukraine conflict.
Inflation stands at 8.2%, significantly above the target of 4%, raising concerns about stagnation.
Military spending has surged to nearly 9% of GDP, contributing to a budget deficit of around $61 billion.
Economic growth decelerated to 1.1% in Q2 2025, down from 4.5% in late 2024, heightening recession fears.
The central bank aims to reduce inflation to 6-7% by the end of 2025.

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Story summary

Russia's central bank lowered its key interest rate from 18% to 17% due to rising inflation and an economic slowdown linked to the Ukraine conflict.
Inflation stands at 8.2%, significantly above the target of 4%, raising concerns about stagnation.
Military spending has surged to nearly 9% of GDP, contributing to a budget deficit of around $61 billion.
Economic growth decelerated to 1.1% in Q2 2025, down from 4.5% in late 2024, heightening recession fears.
The central bank aims to reduce inflation to 6-7% by the end of 2025.