Russian economy continued to grow in Q3, but more slowly than in H1 - CBR analysts

MOSCOW. Oct 15 (Interfax) - The growth in economic activity in Russia slowed in Q3 compared to the first half of the year, and demand for retail loans fell, the Central Bank of Russia's Research and Forecasting Department said in its latest Talking Trends bulletin.

"Economic growth in the third quarter continues at a more moderate pace than in the first half of the year, judging by the preliminary figures and surveys. It is important to note that domestic demand is easing. Demand for loans (the number of applications) in the retail lending and lending to small and medium-sized businesses segments is gradually cooling," it said.

"Data and surveys for August and September for the most part signal slower growing economic activity with persistently high household consumption. This year's decline in crops on the back of adverse weather conditions will probably have adverse effects on Q3 and Q4 GDP. However, this year's larger than expected fiscal impulse is set to make a stronger contribution to domestic demand. Price stability in the coming quarters can only be maintained by moderating private demand. An appropriate degree of monetary policy tightness will be needed," the analysts said.