Russia's Budget Deficit Grows to 2.8% of GDP, Central Bank Considers Inflation Risks Ahead of Rate Meeting

President Vladimir Putin stated that Russia's budget deficit, which expanded by 40% in the first half of the year to reach 2.8% of GDP, is manageable and poses no 'critical' risk. Meanwhile, the growing deficit and new inflation risks, with annual inflation at 6.3% as of August 31, are key factors for the Central Bank of Russia as it weighs its policy ahead of next week's rate meeting, where the key rate currently stands at 14%.