In Russia, there is a rapid increase in the amount of cash in circulation, as well as non-cash funds (money supply M2), which stimulates GDP growth, but affects the acceleration of price growth. This was on the newspaper’s website. “News”.
The publication states that the growth rate of M2 in the eight months of 2023 was extraordinarily high, reaching 24.7% as of August. This not only supported economic growth, but also fueled inflation.
“The latter already significantly exceeds the target of the Central Bank of Russia (4% per year). To reduce inflationary pressure, the regulator sharply increased the refinancing rate. Such a step in the future will slow the growth in the money supply,” the publication says.
According to BCS World of Investments stockbroker Evgeny Mironyuk, growth in the M2 money supply has a deferred effect, which will affect the acceleration of inflation.
Before that, Alexei Zabotkin, Deputy Chairman of the Central Bank of the Russian Federation declarationThe growth of the Russian economy until the end of the year is expected to be in the range of 1.5-2.5%.
Previously, the Central Bank of the Russian Federation harshly raised up to 12% key rate in an unscheduled meeting.