Embassy: US Fed’s rate raise not to shock Russian stock market

WASHINGTON, Dec 8 (PRIME) -- The Russian stock market is very unlikely to be shocked by a U.S. Federal Reserve System’s (Fed) possible key rate increase, Mikhail Kalugin, a head of the economic department of the Russian embassy to the U.S., told PRIME Tuesday on the sidelines of the Doing Business with Eurasian Union conference.

“Yes, it will affect the position of the U.S. dollar. It may lead to a certain increase of its price. But please note that the rate will be raised gradually, if at all. It may have no impact on the Russian stock market. I would not forecast any serious problems,” he said.

“Many economists think that if the key rate hike happens in mid-December, it will have only a short-term effect on the market as everyone has been preparing for that, and I agree with them.”

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