Russian business expects an economic slowdown, RBK says

MOSCOW, Sept 8 (Reuters) - A survey of Russian businesses showed that 57% expect a slowdown in the economy while 28% expect a recovery, the RBK media group said on Monday.

RBK said 15% of businesses were unable to say what they expected. It said that 90% of companies had been forced to find new partners or suppliers over the past year while 74% said they did not have enough credit.

Russia's war economy grew at 4.1% in 2023 and 4.3% in 2024, but growth is slowing sharply this year under the weight of high interest rates.

Russia's highest military spending since the Cold War has stoked inflation, which prompted the central bank to raise its key interest rate to 21% in October, the highest level since the early years of President Vladimir Putin's rule in 2003.

The central bank cut the key interest rate to 20% in June and then to 18% in July, but there have been a series of warnings from senior officials about the fate of the economy, which they say is still shackled by the crippling cost of credit.

The bank's next rate setting meeting is on September 12.