When the Russian government starts assuring the country’s citizens that the economy can cope with the ruble’s volatility, it is a warning sign for them to buy euros or dollars in order to keep their savings. However, with the latest economic perturbations, there can be no saving at all. Still, the Russian policymakers remain optimistic, predicting bright future for the economy. Thus, they think that the ruble can recover without a rate hike by the central bank. This measure can lead to an increase in public spending, and therefore have an adverse effect on the economy pressured by sanctions. So, they have to find alternative ways. On the other hand, this cautious approach may be an indicator of the government sentiment.
Speaking about the sentiment, the current mood in Russian markets is far from good. The ruble is experiencing a similar plunge as seen in autumn 2014. In that period the Russian national currency went into a tailspin and landed a heavy blow on the economy. Most experts fear that this situation may repeat, so soothing government statements raise nothing but concerns.
