MOSCOW, April 25 Russia's 50 basis point rise in
interest rates earlier on Friday will increase the risk of
recession more than it will lower inflation, Deputy Economy
Minister Andrei Klepach was quoted as saying by Interfax news
The central bank surprised markets by hiking the key
one-week minimum auction repo rate to 7.5 percent due to
increased inflation risks.
"The rate rise will not so much lower inflation as slow
growth further and increase the probability not of stagnation
but of recession," Interfax quoted Klepach as saying.
(Reporting by Nigel Stephenson; Editing by Steve Gutterman)