Report: Morgan Stanley raises Russia ’15 GDP fall forecast to 5%

MOSCOW, Apr 13 (PRIME) -- Morgan Stanley has improved Russia’s 2015 economic contraction forecast to 5% from 5.6% on the back of a softer monetary policy, growth of the Brent oil price forecast to U.S. $57 per barrel and January–February investment in industrial production that exceeded previous expectations, Bloomberg reported Monday.

The investment bank also amended the forecast for Russia’s GDP decline in 2016 to 1.8% from 2.5%. It also expects the country’s central bank to decrease its key rate by 400 basis points from 14% by the end of 2015 and by another 200 basis points in 2016.

The Russian Economic Development Ministry’s official forecast envisages a 3% GDP decline in 2015.

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