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Russian Economy Springs Surprise as Central Bank Won’t Rush Cuts

  • GDP shrank annual 1.2% in first quarter, better than estimated
  • Bank of Russia says rate cuts won’t bring ‘significant growth’
Updated on

Russia’s economy contracted less than forecast in the first quarter, with the central banker overseeing monetary policy signaling that cheaper borrowing costs won’t boost growth.

Gross domestic product fell 1.2 percent from a year earlier after a decline of 3.8 percent in the previous three months, the Federal Statistics Service said on Monday. That was less than all but one forecast of 22 analysts in a Bloomberg survey, whose median was for a contraction of 2 percent. The Economy Ministry in Moscow had projected a 1.4 percent decrease.