The Central Bank of Russia may return to easing monetary policy, as it did during the pandemic in 2020, only in the event of a serious economic downturn. This is what it writes RBC Referring to the statement of the Deputy Chairman of the Central Bank Alexei Zabotkin.
“If the economy finds itself in a situation where there is significant underutilization of productive resources, unemployment rises or inflation falls below the target level due to some additional shocks, then we will return to lenient policy,” Zabotkin said.
But he noted that the Russian economy is currently in a state of “overheating.”
“The most important task of the Central Bank is to return inflation to 4 percent in 2024. Therefore, policy easing is not on the agenda,” emphasized the Central Bank deputy governor.
Before that, the head of the Central Bank, Elvira Nabiullina remindedThe regulator is ready to maintain tight monetary conditions as long as necessary to return inflation to the target level of 4 percent. The Central Bank of Russia stresses that higher inflation rates of 6-8 percent are unacceptable, as they could lead to depreciation of savings, reduced availability of long-term loans and increased price volatility. The regulator plans to continue policies aimed at protecting citizens’ incomes and ensuring the stability of the ruble. Earlier, the Central Bank raised key rate up to 19%.
Previously Minek guess Inflation will fall by the end of September.
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Source: Gazeta
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