Nabiullina: the accumulation of savings by Russians can give rise to inflation

Bank of Russia Governor Elvira Nabiullina described deferred consumer demand as a “compressed spring” that could affect the economic environment under certain circumstances. In particular, the head of the regulator believes that savings accumulated by the population in the future may affect inflation and demand. If the supply of goods and services is limited, this can quickly accelerate demand-side inflation,” said Ms. Nabiullina during today’s press conference of the Central Bank, which is broadcast on the regulator’s YouTube channel. Today, the Central Bank lowered the key rate by 150 basis points from 9.5 % to 8%. The adjustment of the indicator in the regulator was explained by the continuing slowdown in inflation, restrained dynamics of consumer demand and a decrease in inflationary expectations of the population and business. Read more about today … .

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