Analysts, who last year sharply criticized the decision by the Central Bank of Russia on raising the key rate, today, recognize the correctness of this decision. They believe that for the Russian economy “the worst is behind us”.
MOSCOW, 15 Dec –. Analysts recognise that I am being criticized actions of the Central Bank of Russia, which in December 2014 in response to the fall of the ruble took the decision to sharply raise the key rate from 10.5% to 17%. About it writes Bloomberg.
Last year after the rate hike officials, economists and businessmen criticized the actions of the head of the CBR Elvira Nabiullina. Many feared that a sharp increase in the key rate is able to paralyze the economy. In addition, immediate stabilization of the rouble, and many recalled the financial crisis of 1998.
The French strategist at OTCex brokerage firm for emerging markets Jean-David Haddad last year called the decision of the Central Bank of the Russian Federation “failure”. Now he admits that “this measure seemed extreme, but, looking back, it helped to stabilize the currency, financial markets, and to rectify the situation”.
“Everyone was surprised that the economy has shown an ability to adapt,” said portfolio Manager securities in the U.S. investment company BlackRock’s Gerardo Rodriguez.
“A set of measures, including raising the key rate of the transfer ruble to float freely in 2014, helped the Bank of Russia to cope with market turbulence and falling oil prices”, — he commented. According to him, this does not mean that the structural problems of Russian economy is overcome, but in very hard conditions she presented “a pleasant surprise”.
Despite the fact that Russian economic growth is projected until 2017, there are first signs of its recovery. Flexible exchange rate allows to compensate for the drop in oil prices, while inflation gradually softened, according to Bloomberg.
Contrary to expectations, the negative effect of sanctions and low oil prices this year was softer. International rating Agency Moody ‘s Investors Service in December improved the Outlook for Russia, noting that by the Central Bank of the Russian Federation measures helped to “absorb shocks”, while managers Bank of America Corp., UBS Group AG, Wells Fargo & Co. predict the growth of Russian shares.
“Although financial risks remain high, as the macroeconomic situation is difficult, we are far from the panic that was observed last year,” commented managing assets of the Bank Union Bancaire Privee in London Paul Laberko.
“A lot of work ahead on the road to recovery, but there is some optimism that the worst is behind us,” he said.
From December 16, 2014, the Board of Directors of the Bank of Russia raised its key interest rate from 10.5 to 17% per annum. “This decision due to the need to limit significantly increased in recent devaluation and inflation risks,” — said the regulator.