The comments from Elvira Nabiullina, the Governor of the Central Bank of Russia, emphasized that the country’s banking system remains sound. The statement came during a speech delivered at the Information community marathon, a segment of the Russia exhibition and forum, and was noted by TASS. She framed the health of the financial sector as a reflection of overall economic resilience, underscoring the central bank’s ongoing vigilance and its role in maintaining financial stability through changing conditions.
Nabiullina elaborated on the banking system’s fundamental function as the economy’s circulatory system. By turning savings into loans and enabling investments across sectors, banks help allocate resources efficiently, support productive activity, and sustain growth. This view reinforces the idea that a robust financial infrastructure is essential for households, businesses, and government programs to operate smoothly and with confidence, especially in times of volatility or external shocks.
She recalled that the sector had to undergo a period of consolidation, including the cancellation of some licenses and the rehabilitation of certain banking institutions. The process faced resistance within the market and among stakeholders, yet the central bank persisted in strengthening supervisory standards and improving risk-management practices. Nabiullina stressed that those measures have culminated in a now healthier banking landscape, capable of supporting both stable credit provision and prudent risk-taking where appropriate.
Looking backward, Nabiullina noted that the central bank possessed effective instruments to address inflation, and she pointed to a readiness to adjust the policy rate if necessary. The policy stance is described as concrete and deliberate, aimed at returning inflation toward the target level of 4 percent. This approach reflects a commitment to price stability as a cornerstone of sustainable economic performance and long-term financial planning for households and firms alike.
In terms of outlook, the Central Bank of Russia updated its inflation projections for the year 2023, shifting the forecast from an initial band of 6-7 percent to a higher 7-7.5 percent. For 2024, the forecast range was adjusted to 4-4.5 percent, moving away from a stricter 4 percent target previously anticipated. The revised projections indicate a more gradual path toward price stability, taking into account evolving domestic dynamics and external factors that influence inflationary pressures. These updates reflect the bank’s ongoing assessment of demand, supply constraints, and the effectiveness of policy tools in balancing growth with price discipline.
Earlier statements from the central bank highlighted the priority of curbing inflation and managing liquidity to avoid runaway price increases. The ongoing dialogue between monetary policy authorities and financial institutions remains focused on ensuring that the banking system can support economic activity while maintaining resilience against external shocks. Such policy communication is intended to foster clarity, reduce uncertainty, and help financial actors align their expectations with the central bank’s strategic goals.