Russia’s economy grows at a slower pace — Central Bank – Business and Economics

MOSCOW, October 25. /TASS/. Russia’s economy continues to grow, but at a slower pace than in the first half of 2024, the Central Bank said in a press release following the key rate board meeting.

“The Russian economy continues to grow, but at a slower pace than in the first half of 2024. This deceleration is mainly caused by increasing supply-side constraints, including a decrease in the availability of spare production capacity and resources work. Domestic demand is supported by growth in household and business borrowing and income, as well as by increased tax spending.

The Bank of Russia suddenly raised its key rate by 2 percentage points to a record 21% per year at its board meeting on Friday. He also did not rule out a further hike at the next meeting, saying further tightening of monetary policy is needed to ensure inflation returns to target and reduce inflationary expectations.