SYDNEY Feb 21 The Group of 20 meeting of
finance ministers and central bank chiefs needs to discuss the
impact on emerging markets of the U.S. Federal Reserve's winding
back of stimulus, a top Russian central banker said on Friday.
Ksenia Yudaeva, first deputy governor of the Bank of Russia,
told a conference in Sydney ahead of the weekend G20 meeting
that more cooperation was needed between global central banks to
help stabilise markets.
"One of the agendas that are clear to me that finance
ministers and central bankers need to discuss even at today's
meeting and tomorrow's meeting and throughout this year, is the
situation in emerging markets, the reaction of markets to the
Fed's tapering," said Yudaeva.
Earlier this week, Russia's central bank warned that
investors were likely to steer clear of emerging markets as the
U.S. Federal Reserve winds down its monetary stimulus. That will
dry up a stream of money that had been flowing into the
"Clearly it's a worry for Russia because particularly in the
past two months Russia was one of the countries which
experienced significant outflow and significant depreciation of
its currency," Yudaeva told Reuters at the sidelines of the
event. "We're thinking about our strategy and how to react."
The central bank lowered its mid-term economic growth
forecasts to below 2.0 percent until at last 2016, in an
acknowledgement that Russia's economy will be sickly for some
"We're worried about the general economic situation, mainly
the fact that Russian growth rate has declined quite
substantially," she said.
Yet the central bank was also concerned that inflation was
proving too "sticky", in part because of the depreciation of the
"This year we set a goal to reduce inflation substantially
and we'll do as much as we can to reach our goal, both this year
and the years to come, because this is a medium term strategy,"