Fitch cuts Russia’s 2018 GDP growth forecast to 1.8% from 2%

MOSCOW, Jun 13 (PRIME) -- International rating agency Fitch has lowered its forecast for Russia’s gross domestic product (GDP) growth in 2018 to 1.8% from 2%, the agency said on Wednesday.

The forecast for 2019 was lowered to 1.9% from 2%.

The agency believes that a positive effect from higher oil prices will be softened in the short-term by a reasonable fiscal policy and the finance ministry’s currency interference aimed at stability of the real currency rate.

Fitch maintained its forecast for Russia’s inflation at 3.5% for 2018 and 4.5% for 2019.

The agency also expects that the central bank’s key rate will be cut to 6.75% by the end of this year from 7.25% currently.

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