Exclusive-Russia’s VTB sees 2025 GDP growth at 1.9%, CEO says By Reuters

MOSCOW (Reuters) – Russia’s second-greatest lender VTB sees 2025 GDP enhance at 1.9%, above the Worldwide Monetary Fund’s forecast of 1.3%, whereas inflation will sluggish to 6.4% from the contemporary rate of 8.5%, VTB’s CEO Andrei Kostin told Reuters in an interview.

“We sing that this is in a position to nonetheless be likely to decrease inflation to 6.4%. Nonetheless, given the high defense force expenditures and the sanctions, the important thing curiosity rate would possibly maybe now now not be absolutely efficient as a application for managing inflation,” Kostin said.

“The curiosity rate as a application does now now not absolutely work on account of many factors much just like the quantity of loans which would possibly maybe be now now not sensitive to the rate and to inflation expectations,” Kostin said.

He said the curiosity rate would possibly maybe skedaddle as much as 23% this month.

“Our analysts sing that by the dwell of this year it is going to be 23%, however past that, it is laborious to claim.”

Kostin said lending enhance, one amongst the factors in the motivate of inflation, will sluggish to 10% subsequent year from 20% in 2024, with companies nonetheless borrowing at high curiosity charges to total their ongoing initiatives.