In addition, BofA-ML experts increased their inflation forecast in the Russian Federation from 11,5% to 12,2% at the end of 2015 and from 5,1% to 6,3% at the end of 2016.
According to the BofA-ML forecast, in 2016, instead of growth of 1,1%, growth of only 0,3% is expected.
BofA also reduced the expected growth dynamics of the Russian economy in 2016 - to 0,3% against the previous estimate of 1,1%, reports gursesintour.com.
“The weak ruble adds about 100 basis points to the inflation forecast for 2015-2016, which narrows the likelihood of the Central Bank cutting the rate by the second quarter of 2016 to a cumulative 250-400 basis points,” Bloomberg quotes Osakovsky as saying.
In its updated forecast, the Ministry of Economic Development is estimating a decline in GDP in 2015 to 3,3% from 2,8%, Finance Minister Alexei Ulyukayev recently told reporters. According to the forecast, the surplus in 2016 will be approximately $72,3 billion, while previously the figure was expected to be $46,7 billion. In January-July, the decline in GDP was 3,6%. When compiling the forecast, the American banking giant Bank of America Corp. took into account the economic indicators of the 2nd quarter and due to low oil prices and a worsening forecast for developing markets.
According to preliminary data from the Ministry of Economic Development (MED) of the Russian Federation, the economy of the Russian Federation in the summer of 2015 contracted by 4,6% year-on-year after a decline of 4,9% the month before and 4,2% in the spring.
