MOSCOW (Reuters) – Russia’s central bank has limited scope to reverse an economic slowdown that reflects underlying structural problems rather than tight credit, the bank’s new head of monetary policy said.
Ksenia Yudayeva, appointed to head monetary policy under new Chairwoman Elvira Nabiullina, defended the bank against political pressure to cut interest rates to boost growth.
MOSCOW (Reuters) – Russia is committed to improving education, health and social welfare and will have no problem financing their long-term development, Deputy Prime Minister Olga Golodets told the Reuters Russia Investment Summit.
Concerns about Russia’s poor demographics, an eroding skills base and the high cost of social security obligations are mounting, amid signs that these chronic problems are taking a toll on overall economic performance.
MOSCOW, Sept 18 (Reuters) – The Russian budget’s dependence
on fickle oil and gas prices is set to remain high, as the
country will be forced to borrow more in response to an
unexpectedly severe economic slowdown.
Under a three-year budget plan seen by Reuters on Wednesday,
the Finance Ministry will raise borrowing to compensate for
lower-than-expected tax revenues and to fund the rising cost of
spending promises made by President Vladimir Putin.
MOSCOW, Sept 13 (Reuters) – Russia’s central bank on Friday
announced a major overhaul of its monetary policy framework to
simplify its interest-rate toolkit, while resisting pressure to
cut policy rates to boost the sluggish economy.
In a move to strengthen the influence of policy rates over
market rates, the central bank said that it was making its
one-week auction repo rate, presently 5.5 percent, its main
policy rate from Sept. 16.
MOSCOW, Sept 12 (Reuters) – A decision by Russian President
Vladimir Putin to freeze utility prices in 2014 adds to chances
that the central bank will cut key policy rates when it meets to
discuss them on Friday.
By a narrow margin, analysts polled by Reuters earlier in
the week had expected the central bank to hold rates this month,
despite pressure from the Kremlin to boost the flagging economy.
MOSCOW, Sept 6 (Reuters) – Russia is considering whether to
forgo annual increases in prices for state-regulated utilities
such as gas, electricity and railways in 2014, according to a
directive issued by Prime Minister Dmitry Medvedev on Friday.
The directive, published on the government’s website on
Friday, instructed the Ministries of Economic Development,
Finance, Transport and Energy, and also the Federal Tarriff
Service, to evaluate the impact of the proposal on the economy
MOSCOW (Reuters) – Russia’s central bank warned of risks to growth on Friday and said output was below potential but, with inflation above target and the rouble weak, it resisted political pressure to cut interest rates.
Data this month showing that manufacturing and services sector activity shrank in July added to signs that Russia’s economy is losing steam.
MOSCOW, July 12 (Reuters) – Russia’s central bank signalled
policy easing ahead on Friday and introduced a new mechanism for
long-term bank funding to try and boost lending, while keeping
interest rates on hold for now.
Despite pressure from the Kremlin to cut rates to boost
Russia’s economy, which is growing at its slowest pace in four
years, the bank left its main policy rate, the one-day minimum
auction repo rate, at 5.5 percent for the 10th month in a row.
MOSCOW (Reuters) – Russian police detained around 30 pro- and anti-gay activists in central Moscow on Saturday, imposing the city’s ban on gay rights demonstrations.
The arrests, underlining Russia’s tough response to public demonstrations by gay groups, coincided with the first ever gay rally in neighboring Ukraine, which was allowed by the authorities and protected by the police.
MOSCOW, May 14 (Reuters) – Russia’s central bank is likely
to keep interest rates on hold on Wednesday, before its new head
takes office, caught between stubbornly high inflation and a
The Bank of Russia has come under political pressure to cut
lending rates to boost economic growth, which has slowed sharply
in recent months and came to just 1.1 percent in the first