Mecklenburg-Vorpommern Economy

Bank of Russia isn’t ruling out another wave of COVID-19 that may harm the economy – Business & Economy


MOSCOW, May 4th. / TASS /. Russia’s central bank does not rule out a further deterioration in the epidemiological environment, which could seriously affect the country’s economic recovery, according to a revised monetary policy report released by the regulator on Tuesday.

The continued spread of the coronavirus and the possible appearance of mutations resistant to the methods of treatment used and vaccines developed do not make it possible to ignore the risks involved, the Bank of Russia noted.

“The deterioration of the epidemiological environment, which can significantly affect economic processes, is still possible. However, the pandemic plays a less significant role in both the global and Russian economies compared to mid and even late 2020,” the regulator said added.

Meanwhile, the pace of normalization of central bank monetary policy in developed economies is coming to the fore as a serious risk, the Bank of Russia stressed.

“An unexpectedly rapid rate hike can lead to market volatility, which will weaken emerging market currencies and tighten global monetary conditions, which in turn can lead to crises in a number of developing countries that have amassed significant external debt in the future Can trigger volatility in the markets, “said the report.