Finance

Prolonged stimulus measures are posing risks to global economy, says Russian Finance Minister By Reuters

© Reuters. FILE PHOTO: Russian Finance Minister Anton Siluanov attends a session of the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia, June 3, 2021. REUTERS/Evgenia Novozhenina

MOSCOW (Reuters) – Countries maintaining economic stimulus measures amid high inflation poses risks to the global economy, Russian Finance Minister Anton Siluanov said in comments published on Monday, warning of market volatility and slower economic growth.

Siluanov, speaking during G20 meetings towards the end of last week, warned of risks that the global economy could overheat and urged countries to normalise monetary and fiscal policy as fast as possible.

Russia’s central bank is widely expected to raise interest rates for a fourth time this year at its meeting on July 23 and Governor Elvira Nabiullina said earlier this month the board may consider a 25-100 basis point hike as inflation hovers far above the 4% target.

“Prolonged maintaining of anti-crisis measures could lead to the (global) economy’s overheating with an accompanying accumulation of imbalances,” Siluanov said.

Higher inflation expectations in response to fiscal stimulus measures have required some countries to embark on rapid policy tightening, he said.

“The subsequent normalisation or even tightening of policy will lead to a need to react to change in currency, financial and commodity markets,” Siluanov said.

“All these factors will create additional volatility on markets and likely contribute negatively to global economic growth.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button