a long period of tight monetary policy will be required – Kommersant
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The head of the Bank of Russia, Elvira Nabiullina, said that in the current conditions, in order to return to the inflation target of 4% by the end of 2024, the Russian Federation needs a long period of tight monetary policy (MCP).
“We have updated the macroeconomic forecast and, based on it, we are clarifying the level of the key rate that is necessary to achieve the inflation target of 4% by the end of next year. In the current conditions, returning to the goal will require a long period of tight monetary policy,” the head of the Central Bank said during a press conference following a meeting of the board of directors.
Ms. Nabiullina also stated that the regulator made a decision increase the key rate to 13% in order to stop the rise in inflation and inflation expectations, which was caused by the high volatility of the ruble exchange rate this year.
In addition, according to the head of the Bank of Russia, the financial market has begun to adjust to the tightening of monetary policy, but this process has not yet had enough impact on price conditions and has had virtually no effect on loan dynamics. The rate increase is also aimed at strengthening and accelerating adjustments, she added.
At the same time, the head of the Central Bank noted that the regulator maintained the forecast for Russian GDP growth for the current year at the level of 1.5-2.5%, taking into account the positive dynamics in the first half of the year and its slowdown in the second.
The news is being updated.
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