Financial Pulse: economic activity stabilised at lower levels
Flash data suggest business activity in Russia in early May stabilised at lower levels compared than before the pandemic, according to the sixth issue of Financial Pulse, a weekly Bank of Russia review.
At the same time, recent weeks saw a substantial rise in the impact of disinflationary factors related to dropping consumer demand, which are set to constrain price movements in the months to come. The easing of anti-pandemic curbs alongside state support measures being implemented will assist in an economic recovery. Its paces will be determined by the spread of coronavirus and potential negative secondary effects from anti-pandemic restrictions.
The Bank of Russia has been monitoring progress in implementing the announced measures. It has been launching further measures to support consumers and SME in the wake of the coronavirus pandemic. Bank of Russia polls show that the proportion of approved applications for debt restructuring has overall remained high. At the same time, there is still a potentially high scale of SME debt restructuring under loan repayment holidays in the most stricken sectors. The Bank of Russia’s new one-month and one-year repo auctions will also help further incentivise banks to restructure current and issue new long-term loans.
