Russia’s economic recovery will be uneven and may not immediately benefit all sectors, the Central Bank predicted Friday.
“Growth is limited, first and foremost, by structural factors,” Director Elvira Nabiullina said during an appearance at the State Duma.
“We estimate a potential GDP growth rate of less than 1.5-2 percent, provided there are no changes in the structure of the economy,” Nabiullina said.
Nabiullina also confirmed that the Central Bank would lower the key interest rate no sooner than the first or second quarter of 2017.
Currently, the year to date inflation rate stands at 4.5 percent. However, inflation has decreased significantly and is expected to decrease further by the end of the year. This had led some to believe a rate reduction would come sooner.
The Central Bank has decided on a more conservative course. Loosening monetary policy too dramatically would weaken the ruble and speed inflation, Nabiullina said.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
