The Russian central bank has ruled out joining its global counterparts with a massive bond-buying despite the country sliding into a recession this year.
Speaking at a banking conference in Moscow, Russian Central Bank Chair Elvira Nabiullina said that a quantitative easing (QE) package wouldn’t be applicable for the country and would increase inflation and heighten capital outflows, according to the Dow Jones news agency.
The country is due to post negative gross domestic product (GDP) growth of around 4 percent in the coming year. Russia has been hit hard by the dramatic fall in oil prices and international economic sanctions following its intervention last year in Ukraine. The Russian ruble has experienced a major selloff due to the economic concerns and was one of the worst-performing currencies of 2014 despite emergency measures by the country’s central bank.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at firstname.lastname@example.org. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.