Chairman of the Central Bank of Elvira Nabiullina called the timing of a decline in the key rate during a speech in the State Duma, RIA Novosti reports.
CB intends to keep the key rate above the neutral range of 5-6 percent at least until mid-2023. “Return to the neutral level of key bet is 5-6 percent, remind, it will happen somewhere not earlier than the middle of 2023,” Nabiullina said. According to her, the hold of the bet above is neutral is necessary for a sustainable deceleration of inflation.
Nabiullina compared the “pumping” of the economy with anti-crisis measures with a sprint run, which is not designed for a long period. “If you compare this year with subsequent, then you can make an analogy with a sprint run and running a coward. It is impossible to run quickly for a long time. That is why it is impossible to” pump the economy “, forcing it to grow above the potential. The economic body will not work high in this mode. Inflation, it is like an excavating pulse at the runner, behind it loss of growth rates – shortness of breath, and then a heart attack – an economic crisis, “she compared.
The head of the Central Bank indicated the importance of timely collapse of anti-crisis measures. “We quickly ran away from the made crisis, now time move forward in the normal pace,” she said. Nabiullina noted the normalization of the budget and monetary policy.
The last meeting of the Central Bank took place on the key rate on October 22. According to his results, the regulator has sharply raised a bet on 0.75 percentage points – up to 7.5 percent per annum. The Central Bank decided on such a step due to the acceleration of inflation, which, according to the results of 2021, should be 7.4-7.9 percent. Nabiullina called the decision “essential step.”