Inflation in Russia is slowing after eight months of growth - Bloomberg
Inflation in Russia has slowed for the first time since July, Bloomberg reports . The Russian Central Bank is taking action to revive economic growth in the country.
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The crisis in Russia appears to be over soon. Oil prices are steadily rising, and the ruble, after falling in the first quarter of 2015, has become the fastest-strengthening currency in the world. American billionaires are now calling for investment in Russia.
“Everything looks like inflation has passed its peak,” said Lisa Ermolenko, an analyst at London-based Capital Economics Ltd. “The consequences of last year’s fall, due to inertia, are causing the ruble to weaken somewhat.” But this is only inertial movement, experts say.
The ruble strengthened 13% in April against the dollar, the best performance among the 170 global currencies tracked by Bloomberg.
The market is anticipating a larger rate cut. The Central Bank has reduced the base rate to 12,5%, which will somewhat improve doing business in Russia. Let us remember that the interest rate was raised to stop the fall of the ruble. The central bank said it plans to cut interest rates further.
A slowdown in inflation will also have a positive effect on reducing the decline in GDP. It is predicted that GDP will decrease by 2015% in 4, and by a little more than 2016% in 1.
In connection with the coup in Ukraine, Russia accepted the Republic of Crimea, which led to anti-Russian sanctions and the economic war of the West against this country. Apparently, as Bloomberg indirectly acknowledges, the intensity of the economic war is subsiding, and Russia will receive a respite.
Russian Inflation Slows After Eight Months of Growth - Bloomberg