The new Budget is based on average oil price of USD50 pb, with expected GDP growth of -3% against inflation of 12.2% and USD/RUB exchange rate of RUB61.5.
the share of global debt that is trading at negative yields has now risen to 8% of the total debt outstanding.
Russian imports “will react strongly in 2015, partly dragged down by the economic contraction” and in part by weaker ruble and continued counter-sanctions.
Russian households are starting de-dolarising their accounts in the wake of some regained confidence in the Ruble and the banking sector:
I have written in the recent past about the bogus debate surrounding the ‘threat of deflation’ in the euro area.