Russian Central Bank: Russia should be prepared for the worst

Russian Central Bank: Russia should be prepared for the worst

Russia's economy should be ready for any scenarios, Russian Central bank's first deputy chairperson Ksenia Yudayeva said at the Gaidar Forum in Moscow.

"We believe that we should be ready for any scenarios, therefore, we are considering quite rigid scenarios and preparing for them," she said.

The deputy head of the regulator recalled that in 2018 the stability of 2017 was replaced by high instability recorded in many markets.

Professor of the RANEPA faculty of Finance, Money Circulation and Credit Yuri Yudenkov, speaking with Vestnik Kavkaza, noted that Yedayeva's statement means a specific set of measures, which will be used by the Central Bank in the case of the most rigid scenario. "It means that the Central Bank will continue to increase the key rate and tighten money supply. The Central Bank will also strictly monitor the Basel III regulations and the process of their implementation. In fact, Ksenia Yudaeva told about these strict measures," he said.

The head of the department of stock markets and financial engineering of the Faculty of Finance and the Banking Business of RANEPA, former deputy chairman of the Central Bank of Russia Konstantin Korischenko, in turn, noted that the harsh scenario is not yet expected in 2019. "First, the price of oil is likely to be in the comfort range of $50-$70 per barrel, that is, above $40 per barrel, included in the Russian budget. Despite all the statements, a serious tightening of sanctions is unlikely, although one should not expect any easing of economic restrictions as well. Thus, any problematic scenarios are associated with challenges within the Russian economy, primarily with fiscal and monetary policies," he emphasized.