Putin Says Economy Not Stagnating, Backs Bank of Russia on Rates

President Vladimir Putin rejected a top banker’s warning that Russia’s economy is showing signs of stagnating, as he backed the central bank’s efforts to curb inflation by hiking interest rates to record highs.

Herman Gref, head of state-owned Sberbank PJSC, Russia’s largest lender, said Thursday that the economy had slipped into “technical recession” in the second quarter and that “July and August show quite clear symptoms that we are approaching zero growth.” He urged a sharp rate cut to avert further damage from high borrowing costs.