Russia cuts rates again as recession outlook persists
New US GDP figures released on Tuesday suggest that the world’s economy is growing more slowly than initially thought, sparking fears of a double-dip recession. Across the water in Russia, the central bank is also feeling the strain, as it cut interest rates for the ninth time since April, in a widely expected move. The bank says its cut from 9.5% to a record low of 9% comes in a lower-inflation environment. Russia's economy caught a cold after the US sneezed in late 2007, although the latest Russian GDP figures show growth of 13.9% in the July-September quarter. But because the Russian economy is heavily reliant on oil exports, it was badly hit by the global crisis. A rebound in oil prices since the start of this year has helped the economy to recover. But it’s still a one-trick pony. Read more: BBC
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