Experts have identified ways to achieve the goal of market capitalization by 2030
A high key rate may interfere with the goal of capitalizing the stock market. Such conclusions were reached by economists of RANEPA in the study “Capitalization of the Russian stock market: prospects and sources of growth”, published in the journal “Questions of Economics”. The authors emphasize that the ratio of capitalization of Russian companies to GDP averaged 36.8% of GDP from 2016 to 2025. To achieve the target values, the government and the Bank of Russia need to reduce the real risk-free yield rate to about 3%. With inflation of 4% per annum, this means reducing the key rate to 7% (now it is 14%). Easing the PrEP would ease the financial burden on equity issuers, reducing the need to pay high dividends, including lowering investors’ expected total return on shares from the current 18.9 percent to 8.5 percent.
A high key rate may interfere with the goal of capitalizing the stock market. Such conclusions were reached by economists of RANEPA in the study “Capitalization of the Russian stock market: prospects and sources of growth”, published in the journal “Questions of Economics”. The authors emphasize that the ratio of capitalization of Russian companies to GDP averaged 36.8% of GDP from 2016 to 2025. To achieve the target values, the government and the Bank of Russia need to reduce the real risk-free yield rate to about 3%. With inflation of 4% per annum, this means reducing the key rate to 7% (now it is 14%). Easing the PrEP would ease the financial burden on equity issuers, reducing the need to pay high dividends, including lowering investors’ expected total return on shares from the current 18.9 percent to 8.5 percent.
