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

About the Author:

James O. Duffy has been a product manager at VanEck since 2015 and is responsible for the VanEck Vectors country and regional equity ETFs. Prior to joining VanEck, he was a Vice President at Markit responsible for index and ETF data products. Mr. Duffy was previously a member of both the New York and American Stock Exchanges and has more than 15 years’ industry experience with ETFs, equities, and derivatives. Mr. Duffy holds a BS in Business Management and Economics from SUNY Empire State.

The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.