G20 Countries Tightened Their Monetary Policies In May, Global Economic Outlook Downgraded

Monitoring of Russia's economic Outllok. Trends and Challenges of Socio-economic Development. Moscow. IEP. 2022. No. 7, pp. 3-11

9 Pages Posted: 22 Mar 2023

See all articles by Urmat Dzhunkeev

Urmat Dzhunkeev

Lomonosov Moscow State University

Yury Perevyshin

Russian Academy of National Economy and Public Administration under the President of the Russian Federation (RANEPA) - Department of Economics

Pavel Trunin

Gaidar Institute for Economic Policy

Maria Chembulatova

Gaidar Institute for Economic Policy

Date Written: June 21, 2022

Abstract

The UN and the European Commission have revised downward the global GDP growth estimate to 3.1–3.2% in 2022, a decrease compared with the IMF outlook released in April (3.6%). The economic growth outlooks for China and the US in 2022 were lowered to 4.2–4.6% and 2.4–2.9%, respectively. At the same time, the rate of inflation keeps growing and the monetary authorities of all G20 developed countries which held meetings in May took a decision to tighten their monetary policies. The US Federal Reserve declared that they were going to reduce the balance by $47.5 bn a month starting from June. The central banks of India, Brazil, Mexico and South Africa raised interest rates. At its extraordinary meeting in May, the Central Bank of Russia reduced the key rate by 3 p.p. to 11% on the back of ebbing of inflationary pressures because of sagging demand, appreciation of the exchange rate of the Russian ruble and a decline in inflation expectations.

Keywords: Russian economy, global growth, inflation, monetary policy, key rate

JEL Classification: F43

Suggested Citation

Dzhunkeev, Urmat and Perevyshin, Yury and Trunin, Pavel and Chembulatova, Maria, G20 Countries Tightened Their Monetary Policies In May, Global Economic Outlook Downgraded (June 21, 2022). Monitoring of Russia's economic Outllok. Trends and Challenges of Socio-economic Development. Moscow. IEP. 2022. No. 7, pp. 3-11, Available at SSRN: https://ssrn.com/abstract=4143451 or http://dx.doi.org/10.2139/ssrn.4143451

Urmat Dzhunkeev

Lomonosov Moscow State University ( email )

GSP-2, Leninskie Gory
Moscow, 119992
Russia

Yury Perevyshin

Russian Academy of National Economy and Public Administration under the President of the Russian Federation (RANEPA) - Department of Economics ( email )

Russia

Pavel Trunin (Contact Author)

Gaidar Institute for Economic Policy ( email )

Gazetny pereulok, 3-5
Moscow, 125993
Russia

Maria Chembulatova

Gaidar Institute for Economic Policy ( email )

Gazetny Lane 3-5
Profsouyznaya street
Moscow, Moscow 117485
Russia

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