First Deputy Chairman of the Bank of Russia Sergei Shvetsov said that sometimes the regulator receives “dubious” recommendations of the International Monetary Fund (IMF) that are irrelevant to the current economic conditions. In this regard, Mr. Shvetsov compared the IMF to a turtle.
“We received a“ dubious ”recommendation to cut rates last fall. The IMF is a turtle that takes a long time to issue its recommendation. And it looks like they analyzed the data for the period preceding the fall – summer or spring, ”said Sergei Shvetsov at a meeting of the A Just Russia faction in the State Duma (quoted by TASS).
He noted that the Central Bank of the Russian Federation is not obliged to follow the recommendations of the IMF, since it has paid off its obligations to the fund and “for more than ten, or maybe twenty years” does not owe this organization any money. “We smiled and did everything right – we raised rates this year, ensuring price stability,” added Mr. Shvetsov.
On April 23, the Central Bank raised its key rate by 0.5 pp to 5%. A month earlier, on March 19, the rate was raised from 4.25% to 4.5%. The first deputy chairman of the Central Bank, Ksenia Yudaeva, explained that the rate was raised due to increased inflationary expectations. According to her, the regulator did not consider maintaining the key rate, since inflation exceeded the target for the Central Bank of 4%.
More details about the decision of the Central Bank of the Russian Federation – in the material of “Kommersant” “Poor More Convincing”.