FX.co ★ Bank of Russia expects Fed to raise rates three times in 2017

Bank of Russia First Deputy Governor Ksenia Yudaeva said that the Russian central bank expects that the Federal Reserve will raise interest rates three times in 2017. She also mentioned that the Fed’s hike would affect the Russian economy less than other emerging markets.

The aim of the Russian economy is not to switch to restorative growth, but to keep from sinking into stagnation after a short period of growth, RIA Novosti said citing Yudaeva.

The Ministry of Economic Development of the Russian Federation expected a 0.5% rise in the Russian economy in 2016. In 2017 it predicts growth of 0.6%, as well as a 1.7% increase and a 2.1% rise in 2018 and 2019, respectively. Yudaeva also stressed that Russia’s economy started transition to growth at the end of 2016 quarter by quarter and the growth is seen to accelerate in 2017.

Russian President Vladimir Putin ordered the government to draft a detailed plan of development that would allow the economy to grow as early as in 2019-2020 at a faster rate than the world average. The draft plan must be ready by March 9, 2017.