The Russian government is trying to get the Central Bank to loosen its monetary policy and make more optimistic economic forecasts. In this respect informs Bloomberg cites sources familiar with the debate.
The publication noted that, against the background of the regulatory board’s meeting on February 10, 2023, the government expects a clearer signal from the Central Bank to cut the key rate this year. However, the head of the Central Bank, Elvira Nabiullina, does not want to lower the rate for fear of rising inflation.
The agency added that it believes that the effect of the Central Bank’s rate cut will be temporary and that inflation will decrease for a short time. At the same time, more accurate forecasts are impossible in conditions of instability.
Bloomberg sources stated that the Central Bank of Russia agreed to improve economic forecasts and that the government positively evaluated this decision. In other words, it is likely that the Central Bank will try to soften its policy.
Bloomberg and analysts’ February 6 consensus forecast reportedHe said that he will leave the interest rate at 7.5% at the meeting of the Board of the Central Bank of Russia on February 10. Also, eight economists polled by Bloomberg expect the Russian regulator to keep the current rate at 7.5%.