Putin: there is no point in implementing a number of projects without reducing inflation

Without reducing inflation in Russia, there is no point in implementing a number of projects both in industry and for people, President Vladimir Putin said. He announced this at a meeting with the leaders of the parties that passed to the State Duma.

“We need further than it (inflation.— “B”) reduce, as it was quite recently. Because otherwise there is no point in the implementation of many of our projects, since this will be negatively reflected for the industry, and it will be difficult for people, ”said Mr Putin (quoted by RIA Novosti). The President noted that “it will be somewhat pointless to even carry out some measures if we deepen and live in conditions of high inflation.” Vladimir Putin said that the Central Bank would then have to increase rates, which, in turn, would affect the rate of economic growth.

Earlier, the chairman of the Central Bank, Elvira Nabiullina, said that in order to lower the key rate, people need to “increase the propensity to save.” According to her, one or more increases in the key rate are possible in Russia. Ms. Nabiullina said that the Central Bank considers it possible “to raise or several steps to increase the rate” at the next meetings of the board of directors of the regulator.

In September, the Central Bank raised its key rate by 0.25 percentage points to 6.75%. The regulator expects inflation to drop to 4–4.5% in 2022 and will remain close to 4% in the future.

Read more in the publication “Kommersant” “Counters are waiting for this autumn.”

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