Prolonged stimulus measures are posing risks to global economy, says Russian Finance Minister
Reuters
Published Jul 12, 2021 08:57AM ET
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."
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.