Russia’s central bank faces a “very difficult choice” when it meets next week to review interest rates as conflicting economic data undermine the case for monetary stimulus, outgoing Chairman Sergey Ignatiev said.
Russia abandoned the sale of $1.1 billion of ruble bonds, the first cancellation of an auction since October, after yields surged on concern policy makers will refuse to lower interest rates to bolster growth.
An adviser to Dmitry Medvedev said the outgoing Russian president should abandon plans to become premier and make way for the man he fired last year as finance minister, Alexei Kudrin, who would do a better job.
Russia, the world’s biggest energy exporter, expects the price of oil shipments to the global market to start decreasing next year as governments begin to withdraw stimulus measures, Finance Minister Alexei Kudrin said.
A European Union-imposed levy on Cyprus bank deposits would risk a restructuring of a 2.5 billion-euro ($3.2 billion) Russian loan to the Mediterranean island, said former Finance Minister Alexei Kudrin.
Russia’s central bank shouldn’t take steps to offset faster inflation because “monetary measures” won’t help contain price growth caused by drought and crop losses, Finance Minister Alexei Kudrin said.