Russia Flags Further Rate Cut, More Budget Spending

Elvira Nabiullina, Governor of Russia's Central Bank, speaks during an interview in Moscow, Russia, on June 27, 2019. Evgenia Novozhenina/Reuters

Russia on Monday flagged a likely further cut in interest rates and more budget spending to help the economy adapt to western sanctions.

Russia faces soaring inflation and capital flight while grappling with a possible debt default after the West imposed unprecedented sanctions to punish President Vladimir Putin for sending tens of thousands of troops into Ukraine on Feb. 24.