Russia’s Economy Encounters 'risks of overcooling'
(MENAFN) Russian Economic Development Minister Maxim Reshetnikov has expressed apprehension about possible "overcooling" within the country's economy.
Delivering remarks before the Duma—the lower chamber of the Russian parliament—Reshetnikov emphasized a notable slowdown in inflation, which he stated has recently stabilized at around 3–4 percent on a year-over-year basis.
He pointed out that recent weekly inflation trends are now closely aligned with monthly statistics, suggesting a drop in volatility.
He added, “Recently, weekly data on inflation is not much different from monthly data, and fluctuations in data have also decreased.”
According to Reshetnikov, this reduced variation signals a need for the Central Bank of Russia to consider these trends carefully when shaping its monetary strategy.
Highlighting the current climate, he warned, “Because in the current conditions, we see the risks of overcooling of the economy.”
This statement underlines the government's concern that efforts to control inflation might inadvertently suppress economic activity too much.
Meanwhile, Alexander Shohin, who leads the Russian Union of Industrialists and Entrepreneurs (RSPP), warned on May 20 that the likelihood of a technical downturn in the Russian economy is increasing.
His comments echo broader fears that the economy may be contracting under current policy pressures.
In response to accelerating inflation, the Central Bank of Russia previously implemented a significant interest rate hike, boosting its key rate by 200 basis points to a record 21 percent in October 2024.
This move reflects aggressive measures to curb rising prices, though it may also contribute to slowing economic momentum.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
