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Putin: Russia's Central Bank Needs to Act Half Step Quicker

© Sputnik / Vladimir Astapkovich / Go to the mediabankDuring his annual press conference Russian President Vladimir Putin said that the Russian Central Bank needs to act a half step quicker.
During his annual press conference Russian President Vladimir Putin said that the Russian Central Bank needs to act a half step quicker. - Sputnik International
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The Russian President urges the Central Bank to act faster to overcome the current economic slowdown.

Russian President Vladimir Putin during the press conference on December 20, 2012. - Sputnik International
Russia
Live Report: Putin’s Annual Big Press Conference
MOSCOW, December 18 (Sputnik) — Russia’s Central Bank needs to act “a half step quicker” though the bank is not the only one responsible for the current economic situation in the country, Russian President Vladimir Putin said Thursday during his annual year-end press conference.

“Actually, this is the business of the Central Bank to lower [rates] or not to lower them, they need to feel this and react,” Putin said.

“Of course [we] may rail [Central Bank Head Elvira] Nabiullina, but don’t forget that as a whole their policies are correct and the Central Bank isn’t solely responsible for the economic situation in the country,” Putin added.

Central Bank, Government Need to Work Collectively

The Central Bank and the Russian government need to work collectively but avoid interfering into each other’s sphere of competence, Vladimir Putin said.

“Their actions need to be coordinated, collective and prudent, but without interference into the Central Bank or the government’s sphere of competence. Nevertheless, there must be coordination and it must be timely,” the Russian leader told reporters.

Putin added that the actions that the Russian Central Bank and the government have so far taken to stem the ruble crisis are adequate.

“I believe that both the Central Bank and government are taking adequate measures on the situation. There are questions on the time frame of the measures. But on the whole, [the measures are] adequate and direction is right,” he stressed.

Putin believes that the economic situation in the county may start improving in the first quarter of 2015.

Since July, the ruble has fallen almost 50 percent against the US dollar, in the worst collapse of the ruble since the 1998 Russian financial crisis.

Risks to the stability of the banking sector in Russia will likely continue to rise, Vice President for Global Research at Bank of America Merrill Lynch told Sputnik. - Sputnik International
Rate Hike by Russia’s Central Bank May Deepen Recession in 2015
In an effort to halt the devaluation of the national currency the Russian Central Bank on Monday raised its key interest rate from 10.5 percent to 17 percent. The measure was not enough to effectively stop the volatility. The market’s reaction to the move pulled the ruble to an all-time low against both the dollar and the euro on Tuesday.

On Wednesday, the Russian Central Bank started selling currency reserves stored in the country's safe-net Reserve Fund.

The Russian economy has been affected by a sharp decline in oil prices as well as Western sanctions imposed on Moscow over its alleged involvement in Ukraine.

 

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