Energy Markets
The Russian central bank defends its high interest rates while warning of the risks associated with oil prices
In a report published on Wednesday, the Russian central bank defended their tight monetary policies, saying that high rates contributed to a slower lending pace and signs of deflation. However, they cited low oil prices for a major risk to the Russian economy. The central bank has been battling high inflation for months, and has resisted the growing pressures to lower borrowing costs. At the same time, critical companies have cut back on their investment plans, while government officials are complaining about a slowing economy. On Monday, Economy Minister Maxim Reshetnikov said that the cooling economy faced "hypothermia", and urged...