High inflation threatens the destruction of the well-being of people, the head of the Central Bank of Russia Elvira Nabiullina said. She noticed that the regulator could not agree with the fact that it is possible to “climb inflation, the main thing, keep the bet low,” writes TASS.
“The growth of inflation expectations, which really worries us greatly, and how he influenced financial behavior, shows how people are afraid of inflation,” she said. The head of the Central Bank called inflation of the real misfortune that makes people poorer, and emphasized that the regulator was obliged to take measures to prevent further price increase. Therefore, I explained Nabiullin, the Bank of Russia at the last meeting and raised a bet to 7.5 percent and could consider the need to make similar solutions at the following meetings.
According to the basic scenario, the Central Bank, inflation this year should be at the level of 7.4-7.9 percent, and the following decreased to the range of 4-4.5 percent. For this, the average annual key rate in 2022 will persist at a level of 7.3-8.3 percent, the head of the regulator explained.
The decision to increase the key bet to 7.5 percent of the Central Bank adopted at the meeting on October 22. The increase was sixth in a row since March, then the rate was at the lowest in the modern history of Russia – 4.25 percent per annum. The current level is the highest since 2018.