Evgeny Goryunov, Head of the Monetary Policy Department at the Gaidar Institute, in a commentary for RT expressed his opinion that the Russian economy is not in danger of economic slowdown, despite the current slowdown in GDP growth. The expert believes that the decline in inflation and the subsequent reduction of the key rate by the Central Bank will support growth and prevent the negative scenario from materializing.
“The main sign of economic meltdown in the present environment will be recession, i.e. a decline in GDP (output in real terms). Theoretically, this could happen if the Central Bank keeps the rate high for too long, which in turn would be possible if price growth never starts to slow down steadily. However, most likely, the inflation rate will continue to gradually decline, and then the key rate will fall, which will support growth and prevent the overcooling scenario from materializing,” said Evgeny Goryunov.