Central Banks

Bank of Russia Sees Economy Growing as Sanctions Shock Fades

  • Policymakers keep their hawkish bias and hold rates on Friday
  • Budget spending, labor shortages might pose risk for inflation

The headquarters of Bank Rossii, Russia's central bank, in Moscow.

Source: Bloomberg

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Russia’s central bank said the economy will recover this year, growing as much as 2% as the the impact of sanctions imposed over the invasion of Ukraine fades.

Gross domestic product is likely to reach pre-war levels by the end of 2024, policymakers said on Friday. That’s far earlier than many economists had expected and reflects the more-limited impact of the restrictions the US and its allies have slapped on Russia.