Leading indicators point to signs Russian economy is cooling - minister

MOSCOW. March 4 (Interfax) - Leading indicators point to signs that the Russian economy is cooling, Economic Development Minister Maxim Reshetnikov said at meeting of the State Duma Economic Policy Committee.

Growth has slowed in a number of sectors and lending is contracting, which is affecting demand and investment, he said.

"In general, as you know, the economy continued to grow last year. However, now we're seeing signs it is cooling, particularly when we look at leading indicators," Reshetnikov said.

"Growth has stopped being across-the-board, its pace has slowed in a number of sectors. Businesses' orders are decreasing. The tightening of monetary policy, increase of the key rate, change in macroprudential regulation are leading to the contraction of lending. And this is not just constraining demand, but also investment," the minister said.

He said "monetary policy is also directly affecting budget policy," as the "growth of [interest] rates leads to the growth of the cost of both servicing the government debt and servicing the obligations that the budget has assumed, meaning the interest risk on subsidized lending programs."

The "government is now sorting out these issues," Reshetnikov said.