Category Archives: money

The Federal Reserve left its key rate unchanged

The Federal ReserveHe kept the target rate for daily lending between banks in a range from 0.25 to 0.50 percent.

The Federal Reserve left interest rates unchanged, but signaled that still may tighten monetary policy, reports Reuters.

Bloomberg announced the start of the largest restructuring of the Russian economy

Russia's economyRussia’s economy is experiencing the largest in the last 15 years of change. At the same time, the authorities carried out the conversion “without fanfare and hype”, which are accompanied by similar changes in Saudi Arabia (Kingdom launched the Vision 2030 program in late April).

The result of the collapse of the oil market was the restoration of a number of Russian industries. “New drivers of growth have emerged. These are agriculture, chemical and food industry, domestic tourism, “- said the agency, Deputy Finance Minister of Russia Maxim Oreshkin. At the same time, they have not yet managed to close the structural drop in other industries, acknowledged the official.

Brexit vote may spark recession

BrexitThe Bank of England has given its starkest warning yet that a UK vote to leave the EU could hit the economy.

A leave vote may cause sterling to fall and unemployment to rise, according to the latest minutes of its Monetary Policy Committee (MPC). Mark Carney, the Bank’s governor, warned that the risks of leaving “could possibly include a technical recession”.


Vote Leave said there was no need for more forward guidance from the Bank.

Kudrin predicts a further depreciation of the ruble

Alexei Kudrin, ex-Finance Minister of RussiaMOSCOW. High deficit of the Russian budget is a major factor in the weakening of the ruble, its rate in 2016 may amount to 70 rubles per dollar.

Such an opinion in an interview with Tass ex-Finance Minister Alexei Kudrin.

I think that a certain high deficit is a factor in the weakening of the ruble, even if the oil price will be stable. I think about 70 (per dollar) at the same parameters on the oil price.

Alexei Kudrin, ex-Finance Minister of Russia

The head of US Treasury believes that sanctions significantly harm Russia

1Jack Lew said that the recommendation of the US authorities to the banks not to buy Russian Eurobonds in fact, too, was part of a sanctions policy.

WASHINGTON. US Treasury Secretary Jack Lew said that Western sanctions significantly harm Russia. He confirmed this, speaking at the budget hearings in the US Congress. From his statements, in particular, it indicated that the recommendation of the US government to banks not to buy Russian Eurobonds in fact, too, was part of a sanctions policy.

Budget 2016: economic fitness regime in the UK

The trouble with self-imposed targets is that if you break them, no one cares quite as much as you. A bit of bad weather and you don’t go out for that run. One rotten day and your low-carb regime is ditched.

As with diets, so with Budgets. George Osborne’s economic policy is guided by self-imposed targets which add up to “economic sanity”. One is the much-trumpeted fiscal charter. The chancellor has pledged and legislated to return the Budget to surplus within four years – in other words, to spend less than his income – and keep it in surplus unless economic growth drops below 1%.

Repatriation continues, Germany has returned 366 tons of gold from New York and Paris

1Germany’s Bundesbank released a new report on the program of repatriation of gold bullion on the results of 2015 Germany, apparently, is still able to achieve their own, Frankfurt has now become the city where the largest reserves of the Bundesbank. During the last year the Central Bank returned to Frankfurt Germany 210 tonnes of gold, of which about 110 tonnes were transported from Paris and about 100 – in New York.

Recall that in 2013 the program began to return 300 tons of gold from the vaults of the Federal Reserve Bank of New York and 374 tons of gold from the Bank of France warehouse in Frankfurt. It is planned to complete this operation by 2020. This in itself is unusual program. All 674 tons of gold could carry a few weeks, or even less if you want it, so it is obvious that the Bundesbank are some limitations that we do not know.