Russia’s rouble crisis: Going over the edge

Posted: December 16, 2014 in economy
Tags: , ,

UK Only Article: 
standard article

Fly Title: 

Russia’s rouble crisis

Rubric: 

A deep recession is now a certainty for Russia in 2015. Things could get much worse

Byline: 

R.D.

Location: 

MOSCOW

Main image: 

20141220_fnp503.jpg

IN THE world of central banking slow, steady and predictable decisions are the aim. So when bankers meet in the dead of night and raise interest rates by a massive 6.5 percentage points it suggests something is going very wrong. It is: the Russian currency crisis many feared is now a reality (see chart) and the mood in Moscow is close to panic. Russians are right to worry: they are heading for a lethal combination of deep recession and runaway inflation.
Many of Russia’s woes start abroad. The country is highly dependent on its oil-and-gas firms. Hydrocarbons contribute over half the federal budget and two-thirds of exports. The state owns big stakes in many energy firms, as well as indirect links via the …

via Economic Crisis http://ift.tt/1zo4R0d

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