The Russian Central Bank could give master classes to other Central banks to conduct monetary policy in an extremely difficult economic conditions. This was told on Wednesday, June 8, chief economist at Citigroup, Professor at the London school of William Bouter, reports video News Service.
Russia has weathered the double whammy of sanctions and falling oil prices due to the “extremely reasonable” attitude of the regulator, he said.
“We were expecting minus eight percent of GDP by the end of last year. Instead, the leadership of the Central Bank did everything right,” said Bauter. He stressed that the Central Bank has learned from the 1998 crisis and let the exchange rate.
“It was a very difficult decision, because in ruble terms the budget looked good, but in dollar decreased absolutely,” — said the economist.
May 30 the head of the Central Bank Elvira Nabiullina said that the sharp reduction of the key rate is not expected to have any significant impact on economic growth but could lead to a surge in the growth rate of prices.
On the same day, the Bank of Russia announced that the Russian economy in April found the bottom, but to talk about sustainable resumption of growth yet.
The country’s GDP in the first quarter of 2016 decreased by 1.2 percent. In 2015, the Russian economy contracted by 3.7 percent.
