The Central Bank reacts to immediate challenges, but does not create conditions for development – Kommersant

Business Ombudsman Boris Titov believes that with the current monetary policy, “we will freeze, freeze.” In his opinion, the Central Bank (CB), with its decision to raise the key rate again, confirmed that it “reacts to immediate challenges, but does not create conditions for development.”

As Mr. Titov stated, “supply-side economics” “continues to remain more a set of inspiring guidelines than a set of real measures.” He noted that demand in the country has been “accelerated” – budget investments in a number of sectors are increasing, and imports are also growing. “With the foreign trade balance, formally positive, everything is not so simple, and recent changes in the ruble exchange rate have clearly shown this. In general, the conditions, to put it mildly, are not classical, and are not determined only by the laws of economics,” he commented.

According to him, the Central Bank “sees the continued weakness of domestic supply for most goods.” This weakness, as Boris Titov argues, “means that the economy can, as they say, float at the mercy of the wind.” He said that against this background, the Central Bank decided to “tighten the sails” in order to maintain control over the situation.

“Nabiullina clearly indicated that she does not believe in the positive effect on the economy from its saturation with credit investments: “The limitation at the macro level is not money, but physical restrictions on the available factors of production.” First of all, we are talking about the labor shortage. Well, we probably need to solve the problem of this shortage, look around the world for those who are ready to come and work? This, of course, is not the concern of the head of the Central Bank, but of other people,” added Mr. Titov.

The Central Bank at its meeting yesterday, September 15, raised the key rate from 12% to 13% per annum. The regulator’s adjusted macro forecast suggests that in the coming months, a high key rate will not add much to the observed picture of growth in domestic demand with insufficient supply and simultaneous excess economic activity.

Details – in the material “Kommersant” “Key Question”.

Laura Keffer