The Financial System: Stability for Growth

6–8 June 2018, ST. PETERSBURG



    Slow economic recovery as well as the tightening of policy by central banks will be the main trends in the global economy in the coming years, Russian Central Bank Governor Elvira Nabiullina said at the 26th International Financial Congress in St. Petersburg. She also predicts growth in interest rates and an expansion in balance sheets, TASS reports. 

    Such dynamics with respect to financial markets will result in two contradictory trends, the Central Bank believes. On the one hand, economic growth has a positive impact on financial markets. On the other hand, growth in interest rates “cools off markets”, Nabiullina said. Thus, despite the overall stabilization in the current situation, there is a high probability of volatility, she added.

    Research groups, including departments of the Central Bank and the Centre for Macroeconomic Analysis and Short-Term Forecasting, published several reports in advance of the IFC about problems associated with reforming the Russian financial sector. According to the reports, the financial market, which was entering a stage of maturity just before 2014, will slowly return to this level prior to 2035.