Russia on Monday flagged a likely further cut in interest rates and more budget spending to help the economy adapt to western sanctions.
Russia faces soaring inflation and capital flight while grappling with a possible debt default after the West imposed unprecedented sanctions to punish President Vladimir Putin for sending tens of thousands of troops into Ukraine on Feb. 24.
Putin said on Monday that Russia should use its state budget to support the economy and liquidity when lending activity has waned. The World Bank expects the economy to shrink by more than 11 percent this year.
The central bank more than doubled its key interest rate to 20 percent on Feb. 28 as the first wave of sanctions hit, before trimming it to 17 percent on April 8. It is expected to lower it further at the next board meeting on April 29.
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