JRL NEWSWATCH: “Moody’s says effect of recent sanctions will be limited” – Bear Market Brief BMB Russia

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“A new Moody’s report says … U.S. sanctions imposed on Russia … in response to the Skripal poisoning will have little effect [on] the economy. New sanctions to come in the fall, however, could aggravate the structural limitations of Russian growth and lead to problems with bank financing. … Loose monetary policy will likely to be the first casualty, with the central bank potentially raising interest rates to curb rising inflation forecasts and a weakening ruble. … should Congress enact harsh sanctions on Russia this fall … medium-term growth will remain constrained by structural factors such as chronic investment shortages, dependence on the oil and gas sector, and high levels of poverty and inequality.”

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