Financial market experts began to doubt the effectiveness of the Central Bank of the Russian Federation to raise the key interest rate in the fight against inflation. The publication writes about this “Vedomosti”.
Alexander Kleshchev, general director of investment company LMS, said that the increase in interest rates has almost no effect on consumer demand, which in turn accelerates inflation. According to him, this tool of monetary policy no longer works in the new economic realities.
“The increase in demand is primarily due to measures taken by the government after the start of the SVO. With such a high cost of money, it is difficult to increase production in the economy,” Kleshchev said.
The expert also stressed that the high rate will not be able to reduce the deficit in the labor market. According to him, the Central Bank should look for alternative tools to combat rising prices.
Dmitry Kulikov, director of the ACRA country and regional ratings group, believes that the Central Bank has provided greater stability against economic overheating.
“Higher and longer overheating is a factor in inflation growth and related forecasts, and hence justification for tightening policy,” the analyst explained.
The Central Bank raised the annual interest rate from 16 percent to 18 percent last Friday, while also raising its 2024 inflation forecast from 4.3-4.8 percent to 6.5-7 percent. Expectations for GDP growth this year were also revised upwards from 2.5-3.5 percent to 3.5-4 percent.
Formerly an economist It has been said About the benefits to Russians of increasing Central Bank interest rates.