Rate hikes in Turkey, India good for investment in emerging markets - Siluanov
NOVO-OGARYOVO. Jan 29 (Interfax) - The decisions by central banks in Turkey and India to hike interest rates should encourage investors to put their money into emerging markets, but Russia should not follow Turkey's example, Russian Finance Minister Anton Siluanov told reporters.
"The rate increase from 7.5% to 12% by India's central bank, and in Turkey has soothed investors a little, and this will have a positive impact on their intentions to invest in emerging market securities," Siluanov said.
Asked whether Russia should follow the Turkish central bank's example, he said: "No."
Commenting on the ruble's exchange rate, Siluanov said that there had been rises and falls in the ruble's exchange rate in recent history, but the current situation was due to the reaction to outflows going to countries that issue reserve currencies. "Look at how other countries from developing markets [are acting]. It's the same. At the end of last year, there were even more reactions to outflows. We have a strong balance of payments, and now the ruble has weakened by 5.7%," he said, adding that the national currencies in other developing countries had weakened by 5%-6%.
"I hope that the certain weakening that has occurred will come full circle," Siluanov said.
