Russian Central Bank Deserves Points for its Monetary Policy

The policies of Russia's Central Bank have had a positive effect on stabilizing inflation in order to provide conditions for longer-term growth, Justin Velez-Hagan, an economic policy researcher at the University of Maryland, told Sputnik.

The Russian Central Bank's move to curb inflation by hiking interest rates has had the desired effect of controlling inflation, and led to a smaller rise in unemployment than may have been expected, Justin Velez-Hagan, an economic policy researcher at the University of Maryland, told Radio Sputnik.

​"You really only saw about 0.5 percent to one percent increase in unemployment, which I think were to do with the specific policies, it wasn't a huge increase."

"It's reasonable comparing to other economies."

Velez-Hagan explained that most experts have forecast that Russia will pull out of its recession in 2016; however, its economic growth will also depend on next year's global economic growth trends.

Looking further ahead, Russia's long-term economic growth will come as a result of the greater diversification of the economy, including the diversification of markets to which Russia exports its raw materials, said the expert. 

"When it comes down to any kind of investment strategy, diversification is key to longevity, and I think Russian higher-up officials are starting to realize that and starting to diversify."

"Once you do that, you see that little hits from other economies, sanctions, other political or geopolitical concerns have a lesser impact."