Head of the Central Bank of Russia: Threats continue

Nabiullina, president of the Central Bank of Russia, made assessments to reporters following the decision of the Central Bank of Russia to keep the policy rate constant at 7.5 percent.

Stating that inflation risks in Russia remain, Nabiullina said: “When we look at our expectations for the interest rate, we think we are more likely to raise the interest rate, although we do have some scope for interest rate cuts.” . she used the phrase.

Noting that they may need to take various measures if the budget deficit in the country increases, Nabiullina said: “In case the budget deficit increases further in the medium term, a tighter monetary policy may be required. From the point of view of the Central Bank of Russia, it is not the budget expenditures that are important, but the indicators of the structural budget deficit”. saying.

Nabiullina stated that restrictions will be imposed on transactions related to the shares of companies in hostile countries in Russia, adding: “Transactions with shares of defense industry companies in hostile countries will be prohibited (in Russia). Of course, the process of how those who have made these investments before will exit these documents needs to be clarified.” he said.

THE PROCESS OF CHANGE IN THE GLOBAL ECONOMY

Elvira Nabiullina said that hardening or softening the various capital control measures on the country’s currency are not currently on the agenda.

Commenting on the process of change in the global economy, Nabiullina said: “Threats to financial stability in the global economy continue. The growth is supported by the opening of the Chinese economy. Fundamental changes are taking place in traditional supply chains, payment methods and technology sharing. The world economy is likely to become increasingly fragmented.” he said.

Emphasizing that geopolitical tensions accelerated the change in question, Nabiullina said: “As for Russia, both positive and negative effects of external conditions are limited by sanctions. External influences will be felt through demand, prices and volumes of exported goods in Russia.” saying. (AA)