Russian Billionaires Say High Rates Create Economic Trap

Russian billionaires warned that high interest rates have created an economic trap. They expect growth to slow to 0.4 percent this year as investments decline.

Billionaires in Russia criticized the central bank's 14.5% interest rate on Friday, warning that tight monetary policy has trapped the national economy. Economic growth is projected to slow to 0.4% this year from 4.9% in 2024. High borrowing costs and falling industrial demand threaten to stall investment as the conflict in Ukraine enters its fifth year.

The Zabotkin Trap and Investment Risks

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