October 22, 2014 / 12:25 PM / 3 years ago

Russia's Kudrin sees interest rate hike, slump in investment

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LONDON, Oct 22 (Reuters) - Western sanctions are likely to depress Russian economic growth by 1-1.5 percent next year and decrease foreign investment by 20 percent or more, former Finance Minister Alexei Kudrin said on Wednesday.

Speaking to journalists in London, Kudrin also said he expected the Central Bank of Russia to have to raise interest rates in a bid to combat the slumping rouble and rapidly rising inflation.

"I do expect Central Bank will have to increase interest rates with the weakening rouble and inflation rising," he said at a Moscow Exchange event.

"Next year we should definitely expect less foreign investment. It could decrease by 20 percent, or more than 20 percent."

Reporting by Liisa Tuhkanen and Marc Jones

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