Governor of the Central Bank of Russia: strict monetary policy will continue

Russian Central Bank President Elvira Nabiullina stated that they could decide to raise interest rates again this year, saying: “We have to maintain a tight monetary policy for a few more quarters to reach the inflation target by the end of 2024.”

Nabiullina made assessments of the country’s economy in the Duma, the lower house of the Russian parliament.

Noting that, according to the estimates of the Central Bank of Russia, the peak of inflation was surpassed in the third quarter, Nabiullina said that annual inflation will begin to decline in the spring and, according to his estimates, inflation of 4 percent The goal will be reached by the end of 2024.

ADJUSTED MONETARY POLICY WILL CONTINUE

Nabiullina explained that they will continue with the current monetary policy to achieve the inflation target and said: “We have to maintain the tight monetary policy for a few more quarters to reach the inflation target by the end of 2024. “The growth rate of loans will will slow down, but next year, according to our forecast, the lending rate will remain positive and will continue to contribute to economic development. she made the assessment of it.

Nabiullina emphasized that they will start reducing the interest rate when inflation begins to decline and said: “Interests may remain at the current level this year, but there may be another increase. Then, as inflation decreases, we believe we will begin to reduce interest rates next year.” he said.

Nabiullina stated that an early relaxation of interest rate policy would harm the fight against inflation: “The cost of this will be much higher both for high inflation and for efforts to restore price stability, the business world, our citizens and the economy.” he said. (AA)