4 Mar 2014
Flash: Russia could be facing recession - Danske Bank
FXStreet (Barcelona) - Lars Christensen, Chief Analyst at Danske Bank notes that all eyes remain on the situation in Ukraine and particularly on developments in Crimea.
Key Quotes
“Yesterday, the sharp increase in geopolitical tensions put the European stock markets under significant selling pressure and the Russian rouble dropped sharply despite significant intervention in the FX market from the Russian central bank and a 150bp rate hike.”
“In our view, the significant capital outflow from the Russian markets combined with the monetary tightening is likely to have significant negative impact on Russian growth and there is now a significant risk of an outright recession in the Russian economy this year.”
Key Quotes
“Yesterday, the sharp increase in geopolitical tensions put the European stock markets under significant selling pressure and the Russian rouble dropped sharply despite significant intervention in the FX market from the Russian central bank and a 150bp rate hike.”
“In our view, the significant capital outflow from the Russian markets combined with the monetary tightening is likely to have significant negative impact on Russian growth and there is now a significant risk of an outright recession in the Russian economy this year.”