Arab Today, arab today putin warns russian economic growth slowing
Last Updated : GMT 14:52:38
Arab Today, arab today
Arab Today, arab today

Putin warns Russian economic growth slowing

Arab Today, arab today

Arab Today, arab today Putin warns Russian economic growth slowing

?Moscow - AFP

President Vladimir Putin warned on Monday that Russia\'s economic growth would slow down this year to less than the world average and ordered his government to act to reverse the trend. The Kremlin chief\'s comments came moments after the central bank was forced to hold its main interest rate unchanged at 8.25 percent for the ninth month running in the face of inflation that has jumped to the highest rate for 21 months. Putin confirmed at a cabinet meeting that Russia\'s growth would slow to 2.4 percent this year from its downwardly revised forecast of 3.6 percent. The government had initially pencilled in 2013 growth of 5.0 percent. \"This is lower than the range necessary for sustainable development, for resolving social and other problems,\" said Putin. \"And second, this is lower than the IMF (International Monetary Fund) world growth forecast of 3.3 percent,\" Putin stressed in televised remarks. Russia\'s economy has suffered from lower domestic consumption and declining industrial production rates. Investment has also lagged as a partial consequence of Europe\'s economic troubles and concern about corruption along with the state\'s dominant economic role. Russia\'s economy expanded 4.3 percent in 2011 and 3.4 percent last year -- a radical cut from rates that approached 9 percent prior to the 2008-2009 global financial crisis. The government\'s inability to stimulate growth to earlier levels has frustrated Putin at a time when Russia is preparing to present its advances to the world at the 2014 Winter Olympic Games in Sochi. The Russian leader suggested on Monday that investments could be stimulated by reaching into the pension fund and using those assets to lay the groundwork for select state projects. The central bank has also been under intense pressure from ministers to lower rates in order to stimulate growth in a practice broadly adopted by the world\'s developed nations. But the bank has been stymied by unexpectedly high inflation that in annualised terms reached 7.4 percent in May -- well ahead of the government\'s target of 5.0 to 6.0 percent. \"The maintenance of inflation above the target range over the course of an extended period may affect the expectation of the market, which is a source of inflation risk,\" the central bank cautioned. It further noted that the overall economy \"was indicating low growth rates.\" The bank decided to leave the discount rate at which it repurchases government securities from the commercial institution steady at 5.5 percent while lowering some medium- and long-term borrowing rates. Market analysts immediately read this as a sign of a probable easing of monetary policy in the months to come. \"The turn towards the coming easing is clear,\" BNP Paribas said in a research note. \"We reiterate our call that the first cut is likely already in July.\" Renaissance Capital also predicting a July cut and noted that the bank had issued \"worrying signals on economic growth.\" The change in rate policy is expected to come just as outgoing central bank governor Sergei Ignatyev is replaced by Putin\'s new pick Elvira Nabiullina. \"Outgoing Governor Ignatyev has been consistently arguing against lowering rates in the past six months or so, but the arrival of Nabiullina should change the policy bias at the central bank to a more accommodating position,\" Renaissance Capital said.  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today putin warns russian economic growth slowing Arab Today, arab today putin warns russian economic growth slowing

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today putin warns russian economic growth slowing Arab Today, arab today putin warns russian economic growth slowing

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today unveils Joon - the 'millenials' airline

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today US-made bomb used in fatal strike

GMT 10:16 2017 Saturday ,23 September

US-made bomb used in fatal strike
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:03 2017 Thursday ,21 September

Alarm over flesh-eating ulcer cases

GMT 06:49 2017 Friday ,22 September

O'Leary: Could ground more planes

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday