Russia Accelerated Easing Due to Underspending: Central Bank

Wednesday, 20 November

Central bank received information from Finance Ministry that the 2019 budget wouldn’t be fulfilled and that led it to accelerate monetary easing, First Deputy Bank of Russia Governor Dmitry Tulin says at VTB Capital forum in Moscow.

  • “Partly because of that, we changed our course of action and the pace of rate cuts got steeper”
  • Finance Minister Anton Siluanov says on same panel session that about 1 trillion rubles will be underspent from this year’s budget. Says money will be spent next year
  • Economy Minister Maxim Oreshkin says increase in underspending is due to technical change in how government money is released; won’t have major impact on economy
  • READ: Putin Spending Spree Is So Far Just $53 Billion in the Bank
  • NOTE: Russia delivered biggest rate cut since 2017 on Oct. 25, cutting by 50bp to 6.5%

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