Nabiullina announced the broadcast of the decision to tighten monetary policy to the Russian economy

The decision of the Board of Directors of the Central Bank to tighten monetary policy (MCP) is already being translated into the Russian economy. This was stated by the Chairman of the Bank of Russia at a press conference following a meeting of the regulator’s board of directors.

“The tightening of monetary policy is already being transmitted to the economy. We see this in the growing attractiveness of savings and a slight cooling in lending,” she said, adding that the pace of consumer lending has slowed.

Nabiullina also added that, if necessary, the Central Bank will raise the rate in the future with “decisive steps”. According to her, it will be possible to switch to a reduction only after a stable decline in inflation is recorded, that is, in 2024.

October 27 Central Bank accepted the decision to raise the key rate for the fourth time in a row – from 13 to 15%. In its release, the Central Bank explained the need to tighten monetary policy by the fact that current inflation pressure has increased significantly and is exceeding the regulator’s expectations. The increase in domestic demand is steady and increasingly exceeds the capacity to expand the production of goods and services, the rate of credit growth remains high, and the decline in fiscal stimulus in the coming years will occur more slowly than previously expected, the Central Bank writes.