Sunday, October 2, 2016

Old Model of Russian Economic Growth Exhausted Itself - Central Bank Head

It is a very tricky path ahead for both the bank and the banker.
From Russia Beyond the Headlines:
Russia's new model of economic growth should be based on investment, said Elvira Nabiullina.

The old model of the Russian economic growth, based on oil prices, is exhausted, and a new model should be based on investment, governor of the Central Bank Elvira Nabiullina said on Oct. 2.

"The old model of economic growth has exhausted itself. The new model should be based on investment," said Nabiullina.

According to the Central Bank’s forecasts, positive quarterly growth of GDP is expected already in the second half of 2016. However, GDP growth rates will not be high in 2017 - less than one percent.
The Central Bank’s risky scenario is based on the oil price of $25 per barrel. In this event, Russia’s GDP may go down by 1-1.5 percent in 2017.
Source: TASS
August 2016
"Russia facing deflation for first time in 5 years"
"Bank of Russia: 25 years of Regulating Currency and Bank Crises"
June 2016 
How Russia Tamed Inflation
Bank of Russia Cuts Rate First Time Since July as Risks Fade
Considering what she has had to work with, sanctions, oil prices etc., the central bank's performance has been as good as one could hope for.
Possibly also of interest:

What Changed In Russian Central Banking? "Turning the Russian petro-monetary transmission mechanism upside-down"
"The Russian Central Bank Has Just Published its Assessment of the State of the Russian Economy "
Russia Central Bank Prepares For Three Years of $35 Oil
"The Russian Central Bank Has Just Published its Assessment of the State of the Russian Economy"
Sentiment Towards Russian Investments Could Be Thawing, Despite International Sanctions
Stratfor: "Russia Has Few Options for Turning Its Economy Around"