The market has long been waiting for a decision by the fed rate, so it should not create additional risks for the economy, said the head of Ministry of economic development Alexei Ulyukayev.
BEIJING, 10 Nov. The head of the Ministry of economic development Alexei Ulyukayev considers exaggerated the possible risks for the Russian economy from the decision of the U.S. Federal reserve on rate.
The Minister has identified a possible rate hike by the fed before the end of this year.
“I would not exaggerate these risks, the market for so long waiting for it. It seems to me that they are mostly taken into account by the market,” the Minister added.
The open market Committee of the Federal reserve system (the fed) in the United States last raised the base rate 29 June 2006. In 2007-2008, the regulator gradually reduced rate until, until it reached the lowest level of 0-0. 25% in December 2008.
According to the results of the next meeting on 28 October, the fed again kept its base interest rate at a record low of 0-0. 25% per annum, however, signaled a possible rate hike at the next meeting in December of the current year based on indicators of employment and inflation.