Russia Locked in ‘Huge’ Rates Feud, Shuvalov Says

Russia’s central bank is resisting calls to cut interest rates, sparking a “huge argument” with the government over priorities as economic growth slumps, First Deputy Prime Minister Igor Shuvalov said.

Russia needs “easier money” to boost corporate lending, Shuvalov, 46, said in a Jan. 18 interview during a train ride to Moscow from Kaluga. Bank Rossii, the country’s central bank, has room to cut borrowing costs by as much as a percentage point and is resisting as it fights inflation, he said.