Support The Moscow Times!

Interest Rates Might Fall

The Central Bank will stay its hand in the first quarter of 2013, seeking confirmation that inflation is slowing before it eases interest rates to revive a slowing economy, a poll of 19 economists shows.

The survey predicted that the economy would grow 3.2 percent in 2013, down from an expected 3.6 percent this year and far short of pre-crisis expansion rates of about 7 percent a year.

Russia's economy has withstood the global slowdown this year thanks to a spike in government expenditures before President Vladimir Putin's election in March, while prices for its key export, oil, have stayed over $100 per barrel.

However, international economists and local think tanks point to the vulnerability of Russia's $1.9 trillion economy, as its commodity dependence has only increased since Putin first became president in 2000.

(Reuters)

Related articles:

Read more

The need for honest and objective information on Russia is more relevant now than ever before!

To keep our newsroom in Moscow running, we need your support.