Russia May Be in Position to Cut Rates in June, Ulyukayev Says

Risks to economic growth coupled with forecasts that inflation may slow mean lower rates may be appropriate, Russian Economy Minister Alexei Ulyukayev tells reporters in Kaliningrad.

  • Ulyukayev says he would “probably” cut at next meeting
  • Ulyukayev says March increase of 150bps was “absolutely correct,” not sure 50bps increase in April was right move
  • Russia faces risk of technical recession as GDP may be flat or contract 0.1% q/q in 2Q after 0.5% q/q drop in 1Q: Ulyukayev
  • Russian inflation set to peak at 7.5%-7.6% in May or June before slowing to 6%-6.5% by late 2014, early 2015
  • Russia may review state asset sale plans given changing economic, political climate, Ulyukayev says
  • Ulyukayev says sanctions effect on economy hard to measure, though fear of sanctions is greater than sanctions themselves
  • NOTE: Ulyukayev was first deputy central bank chairman for

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