Slowing Russian growth sets up interest rate fight

Thu 31 Jan, 2013 11:41 PM IST - 1:27 | 2 views

Russia’s economy grew at the slowest pace in at least three years in 2012. High oil prices meant there was no budget deficit for the world’s biggest energy exporter, but the Kremlin now wants lower interest rates to boost growth and Russia’s central bank is not keen on that means of monetary stimulus. Gross domestic product expanded by a weaker than expected three point 3.4 our percent last year, down from 2011’s 4.3 percent. The Russian government’s forecast is for 3.5 percent growth this year.