Source Pravda.Ru

Possible increase in U.S. rates will not hurt Russia

A possible increase in interest rates by the U.S. Federal Reserve may have a noticeable effect on Russia, however it will not lead to negative consequences, Russian Finance Minister Alexei Kudrin told reporters after a meeting with U.S. Federal Reserve Chairman Allan Greenspan.

According to Mr. Kudrin, this increase may prove "to be more noticeable for Russia as for a country with the developing economy, but it will not lead to negative consequences."

Presently, the U.S. Federal Reserve interest rates, which banks use for one-day loans, is 1%.

"When the rate on the world markets are low, capital moves toward developing markets where profitability is higher, and in this case a bubble effect occurs," Mr. Kudrin said.

According to experts, the bubble effect means a sharp outflow of capital from any country because interest in its market decreases as the U.S. Federal Reserve interest rate increases.

At the same time, according to Mr. Kudrin, this rule doen not concern Russia very much today.

"Our market is growing, we are being dynamically reformed and are creating a potential for increasing capitalization. We have not yet entered a serious bubble. The inflow of capital has coincided with the expansion of our market," the Russian minister said.

At the same time, Mr. Kudrin pointed out that "all countries must be ready for raised rates."

On Monday Mr. Kudrin will take part in a session of the UN Economic and Social Council in New York and will also address the American-Russian Business Council.

On Tuesday, Mr. Kudrin will attend After the Elections: How to Make the Russian Economy Competitive, a conference that was organized in New York by the East-West Institute.

He announced his intention to create a news service called "Pravda," which means "truth" in Russian. Well, we are Pravda. The Pravda.Ru website has been working professionally in Russia since 1999

Elon Musk wants Pravda, but we already have it

The co-author of this disaster is the Dutch government, which did not find either strength or desire to save the lives of its citizens who were flying on that plane. The Dutch authorities did not demand Ukraine to comply with international aviation regulations

Blame MH17 on Russia: International investigation turns into demonic circus

On the second day of the St. Petersburg International Economic Forum, a plenary meeting was held, in which Russian President Vladimir Putin, French President Emmanuel Macron, Japanese Prime Minister Shinzo Abe, Chinese Vice President Wang Qishan and IMF head Christine Lagarde took part

World leaders unite with Russia at St. Petersburg International Economic Forum
Comments
What would you do if you were Kim Jong-un?
Trump sows death in Gaza Strip as US to celebrate opening embassy in Jerusalem
What would you do if you were Kim Jong-un?
What would you do if you were Kim Jong-un?
What would you do if you were Kim Jong-un?
What would you do if you were Kim Jong-un?
What would you do if you were Kim Jong-un?
What would you do if you were Kim Jong-un?
Myths about Stalin: Why do they lie about Great Patriotic War?
What would you do if you were Kim Jong-un?
Trump sows death in Gaza Strip as US to celebrate opening embassy in Jerusalem
After Syria, Russia goes to Afghanistan
After Syria, Russia goes to Afghanistan
After Syria, Russia goes to Afghanistan
World leaders unite with Russia at St. Petersburg International Economic Forum
What would you do if you were Kim Jong-un?
World leaders unite with Russia at St. Petersburg International Economic Forum
Blame MH17 on Russia: International investigation turns into demonic circus
Blame MH17 on Russia: International investigation turns into demonic circus
Blame MH17 on Russia: International investigation turns into demonic circus
Blame MH17 on Russia: International investigation turns into demonic circus