Much of Russia’s success in weathering sanctions can be put down to both the conservatism of and the resolve in and around its monetary policy. This policy remains excellent and the country’s central bank continues to stick to its guns. It remains focused on bringing inflation down, while letting the currency float freely. The bank’s medium-term fiscal policy framework looks conservative and there is more evidence (in, for example, the latest purchasing managers’ indices - PMIs) that the growth outlook is gradually improving.
Indeed, the central bank’s peers recently recognized the success of its efforts when Elvira Nabiullina, the bank’s head, was named the best Central Bank Governor in Europe in 2016 by the international financial magazine, The Banker.
Russian PMIs
Source: Markit
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