NEWSWATCH: Morgan Stanley thinks Russia’s doomed
Business Insider reports on Morgan Stanley’s pessimistic Russian economic forecast:
Morgan Stanley has a short message for Russia: you’re doomed.
This past week hasn’t been easy for the Russian economy: … Thursday … EU foreign ministers decided to extend … sanctions on Russia by six months. Additionally, the Central Bank slashed interest rates to 15% down from 17% after the economy deteriorated following the rate hike in December.
And now Morgan Stanley is out with a pretty scary forecast, too.
‘We downgrade 2015 growth from -1.7%Y to -5.6%Y and revise our 2016 growth from a mild (0.8%Y) recovery to a 2.5%Y recession,’ writes Morgan Stanley’s Alina Slyusarchuk.
Some key assumptions include weak oil price and tighter policy responses, as well as the risk of further sanctions and heightened state control of the economy.