MOSCOW: The Bank of Russia is "very concerned" that inflation in the country has been above the target for four consecutive years...
MOSCOW: The Bank of Russia is "very concerned" that inflation in the country has been above the target for four consecutive years, though these years were full of economic upheavals, the regulator’s Governor Elvira Nabiullina said at a meeting with the KPRF (Communist Party of the Russian Federation) faction in the State Duma (lower house of the parliament).
The Central Bank sees global tariff wars intensifying and evaluates the channels of their influence on the Russian economy, she added.
TASS has collected the key comments by the head of the regulator.
On inflation and key rate
Weekly data suggests that inflation slowdown in Russia "is at least not halting."
If the Bank of Russia hadn’t raised the rate to 21% business and citizens would have felt inflation "a great deal stronger than now": "It is inflation, not growth of interest rates, that are eroding wages and pensions."
The Central Bank "is very concerned" that inflation has been above the target for four years already, though these years were full of economic shocks: "The main thing is to ensure that it (inflation - TASS) does not spiral beyond control and does not reach double-digit figures."
The regulator does not expect the period of high key rate "to be prolonged indefinitely."
On economic situation
The Central Bank sees escalation of global tariff wars and it is assessing their channels of influence on the Russian economy: "The main channel of influence may lie through fluctuations of oil prices, decline of oil prices."
There are reasons to believe that in 2025 investment in the Russian economy "will remain close to last year’s elevated level."
On assets
There is no way to unblock Western assets that have been frozen in Russia as reciprocal measures, without reason: "It is necessary to make sure that measures remain reciprocal, take them deliberately and in no case unblock those assets prior to any reason emerging."
On possible return of Western companies to Russia
The Central Bank has not received any requests on return of foreign companies in the financial sector to Russia yet: "Nothing is clear to us, though as the government has already said, all this will be done with regard to national interests.".
-News Feed
COMMENTS