Reshetnikov announced the threat to economic growth due to the sharp tightening of the PREP

A sharp tightening of monetary policy poses a threat to economic growth. This was announced by Maxim Reshetnikov, Minister of Economic Development of the Russian Federation, at the Izvestia studio on June 19 as part of the St. Petersburg International Economic Forum (SPIEF-2025).

According to him, in December 2024, annual inflation was about 15%, while the Central Bank's key rate was 21%. This corresponded to the real rate of 6%. Currently, inflation, converted to the annual index, has decreased to 5%, but the key rate remains high — about 20%.

"This has led to real interest rates rising from 5% to 15%, meaning monetary conditions have tripled," the minister said.

He added that as a result, lending has stagnated in the country, and the growth of the money supply is supported mainly by increased budget expenditures.

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