MOSCOW (Reuters) – Russia’s attempts to wean itself off its chronic dependence on natural resources have failed to deliver tangible results, a study by the European Bank for Reconstruction and Development (EBRD) showed on Friday.
The 96-page “Diversifying Russia” report makes sober reading for the government of President Vladimir Putin. Russia, the world’s largest oil and gas producer, has in recent years launched one initiative after another aimed at reducing its over-reliance on commodities by promoting alternative sectors.
MOSCOW, Dec 10 (Reuters) – Russia’s central bank tweaked its
policy rates on Monday, in a move designed to reduce market
volatility, and signalled that it intends to keep rates on hold
in the near future.
It raised its fixed deposit rate by 25 basis points to 4.5
percent, while cutting its foreign exchange swap rate for
roubles by 25 basis points to 6.5 percent.
MOSCOW (Reuters) – Russia’s lower house of parliament, the Duma, has approved a pension reform law that will cut savings without raising retirement ages, ducking a tough decision on how to finance the budget burden of an ageing population.
The parliament made one concession to Russia’s nascent asset management industry, retaining a higher levy for workers who opt to keep their retirement account with a private asset manager.
MOSCOW (Reuters) – It has been dubbed quantitative easing, Russian-style. A surge in central bank lending to Russian banks is sustaining rapid loan growth, but also risks fueling inflation and a potential credit bubble.
On the face of it, Russia’s central bank has been acting tough. To clamp down on inflation it has recently hiked interest rates – in stark contrast with the ultra-loose monetary policies seen in western economies.
MOSCOW, Nov 22 (Reuters) – It has been dubbed quantitative
easing, Russian-style. A surge in central bank lending to
Russian banks is sustaining rapid loan growth, but also risks
fueling inflation and a potential credit bubble.
On the face of it, Russia’s central bank has been acting
tough. To clamp down on inflation it has recently hiked interest
rates – in stark contrast with the ultra-loose monetary policies
seen in western economies.
MOSCOW, Nov 20 (Reuters) – Slower retail sales growth in
Russia in October has added to concerns the economy is feeling
the global economic chill, as previously free-spending domestic
consumers grow more cautious.
Federal Statistics Service data on Tuesday showed
year-on-year growth in retail sales fell last month to 3.8
percent from 4.4 percent in September, significantly below the
4.3 percent forecast in a Reuters poll last month.
MOSCOW, Nov 9 (Reuters) – Russia’s central bank left all its
policy rates on hold as expected on Friday, for the second month
in a row, and adopted a less hawkish tone on inflation that
suggests it may stay its hand in subsequent months.
In a statement accompanying its rate decision, the Bank of
Russia was more optimistic about inflation trends than in
previous months – interpreted by analysts as making future hikes
in rates less likely.
MOSCOW, Oct 18 (Reuters) – A Russian government plan to
slash compulsory retirement savings threatens to cripple the
nascent asset management industry without fixing a hole in the
state pensions budget, industry players and economic experts
Progress on pension reform is being closely watched, as
Russia grapples with a huge shortfall in its overburdened state
pension system. Subsidies to this system already swallow up a
quarter of the federal budget – and they will keep rising as the
number of pensioners keeps growing.
MOSCOW, Oct 17 (Reuters) – Russia’s economy is struggling to
maintain its recent growth momentum, economic statistics showed
on Wednesday, increasing the likelihood that the central bank
will hold off on a further hike in interest rates next month
despite fears about rising inflation.
Data released by the State Statistics Service showed that
retail sales rose by 4.4 percent in September compared with a
year earlier, a marginal increase on 4.3 percent growth
registered in August.
MOSCOW (Reuters) – The easy days are over for Russia. After years of rising oil prices that poured ever more revenues into the nation’s coffers, it now faces tough decisions on spending.
A draconian budget plan, due to go before parliament on Friday, symbolizes the new era of austerity. And it raises big questions about how exactly Russia will make its books balance in the years ahead.