Instant reaction to Putin’s press conference

The mounting economic crisis in Russia meant that there has been greater-than-usual focus on President Putin’s annual press conference, which is taking place this morning. In this Update we provide our instant reaction to the key points that have been raised on the crisis. Our overall impression is that, while there were plenty of contradictions in what Putin said, the general policy response will remain unchanged. Capital controls remain a measure of last resort, and the first line of defence for the ruble will be continued tight monetary policy. Whatever happens, a deep recession now looms.