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Exclusive-Top Russian banker says sanctions-hit economy will slow in 2025

MOSCOW (Reuters) -Russia's sanctions-hit, militarized economy is expected to slow next year and banks' profits will fall, while the benchmark interest rate may climb to 23% by the end of this year, Andrei Kostin, CEO of Russia's second-largest lender, VTB, said. Kostin predicted that GDP growth will slow to 1.9% in 2025, above the International Monetary Fund's forecast of 1.3%. Kostin cautiously criticized the central bank's hawkish monetary stance, saying the current inflation rate did not require a benchmark interest rate "three times this level".