Russia cuts interest rate by 100 bps from 20-year high; warns tight policy will stay
Russia's central bank lowered its benchmark interest rate to 20 percent on Friday, easing it from a two-decade peak of 21 percent as signs of economic cooling and easing price pressures emerged.
The move marked the regulator's first rate cut since September 2022 and followed growing calls from businesses and political quarters who said the high borrowing costs were choking investment and stalling growth.
According to AFP, the bank said in a statement that the economy was 'gradually returning to a balanced growth path,' while also cautioning that monetary policy would 'remain tight for a long period.'
The inflation rate remains above 10 percent, but the central bank noted that price pressures are 'continuing to decline.'
Russia officially targets inflation at 4 percent but does not expect to return to that level until 2026.
Since its full-scale offensive on Ukraine began in 2022, Russia's economy has faced intense volatility. The Kremlin ramped up military spending to support the war effort, pouring funds into weapons production and troop logistics — a push that temporarily bolstered growth despite sweeping Western sanctions.
Friday's move follows months of policy pressure, with the central bank walking a tightrope between supporting growth and containing inflation risks.
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He made it clear that the AI race isn't like traditional markets where multiple players can thrive; instead, there will likely be one dominant power, and he believes it's crucial that Western democracies lead that credited American corporate culture for fostering rapid innovation, saying that U.S. companies are uniquely positioned to adapt quickly and push tech boundaries. 'No other economy has corporate leaders as adaptable and tech-savvy while remaining deeply grounded in industry expertise,' he warning wasn't just for the U.S. government—it was a message for all Western allies. He urged countries in Europe and beyond to learn from America's aggressive innovation approach. He expressed concern that without similar urgency and investment, other democratic nations could lose ground in AI development, making the global balance of power increasingly tilted in China's urgency he stressed reflects a broader concern among policymakers and tech leaders about China's rapid advancements in AI, especially in military and surveillance Karp made headlines with his AI warnings, Palantir is also facing political heat. Some Republican lawmakers are criticizing the Trump administration's expanding deals with the company, citing concerns over surveillance and data privacy. There are reports alleging that Palantir helped gather information on Americans during Trump's directly addressed these claims, calling them 'ridiculous.' He denied that Palantir surveilled U.S. citizens to aid the federal government, insisting that the company operates within strict legal and ethical the pushback from GOP lawmakers has had a market impact. On Thursday, PLTR stock fell by 7.77%, closing at $119.91, following reports of criticism over the company's government the controversy, Palantir has significantly expanded its footprint in the federal government. Since Donald Trump took office, the company has secured over $113 million in new or extended contracts, not including a massive $795 million deal with the Department of Defense. These contracts span across various government departments, including defense, intelligence, and public growing role in national security, and its work with the U.S. military, puts it at the center of both innovation and political recent criticism and Thursday's stock dip, Palantir has seen a 435% surge in its stock value over the past 12 months. Investors have largely backed the company's strong positioning in AI and defense technologies, as well as its growing list of public sector and private sector Karp's comments—and the political tension around federal contracts—signal that volatility may continue. As the AI race intensifies, Palantir's future may depend just as much on public trust as it does on government countries like China investing billions into AI, Karp's call for the West to 'keep up' isn't just a company pitch—it's a broader plea for urgency. Whether it's through policy changes, public-private partnerships, or stronger investment in AI research, the next few years could decide who leads the global tech the AI landscape evolves, Palantir Technologies remains at the center of the debate—balancing innovation, ethics, politics, and national security. Karp's stark message is clear: the AI race isn't slowing down, and only the most prepared nation will win.A1: He believes AI dominance will go to one nation, urging the West to move faster.A2: No, CEO Alex Karp denied all surveillance claims linked to the Trump administration.
