Uncertainty over the path of interest rates in the U.S. is causing investor concerns and market volatility, according to the governor of the country's central bank.
The Bank of Russia decided to keep rates on hold Friday but Governor Elvira Nabiullina used the opportunity to highlight external economic conditions and how they were affecting money flows in the emerging economy.
"External conditions remain complicated, with persistent unfavorable trends," she said in transcript of her speech on the bank's website.
She spoke of "high volatility" in world markets caused by frequent shifts in global investors' sentiment and expectations, adding that it was linked to several sources of uncertainty such as the expected pace of normalization of the U.S. Fed's monetary policy.
The bank's review of market participants' expectations, with regard to the rising path of the Fed's policy rate, has seen a reassessing of the attractiveness of assets, she said.
"We observe fluctuations in the world FX market, instability in the scope and directions of capital flows, and fluctuations in the stock and commodity markets," she said.