Russian President Vladimir Putin argued that high interest rates slow economic growth while preserving the public’s savings in banks. This stance accompanied an announcement of an increase to Russia’s key policy rate. In remarks at the St. Petersburg International Economic Forum, Putin noted that higher borrowing costs can slow the pace of expansion for businesses. Yet he suggested that the long-term effect on ordinary people remains favorable because savers benefit from the stronger return on bank deposits. He framed the measure as a shield for citizens facing volatile markets, while acknowledging the strain it places on investment and enterprise.
Putin pointed out that inflation in Russia has not yet fallen below double digits, but he highlighted adjustments the government has already made. Social payments and pensions have been indexed, the minimum wage has risen, and living standards have improved for many families. He presented these steps as evidence that authorities are protecting Russians who found themselves in the hardest positions during economic upheaval, even as global pressures persist.
Earlier, Putin criticized Western sanctions, describing them as irrational and poorly conceived. He argued that the scale and speed of restrictive measures reveal a clear intent to destabilize the Russian economy. He asserted that Western actions fail to achieve long-term goals and warned of the ongoing impact of external pressure on domestic markets and strategic sectors, while stressing Russia’s resolve to adapt and endure in the face of external challenges (context reported by various outlets).