The Russian economy has managed to recover to pre-crisis levels, and in some industries even exceed them, said the chairman of the Central Bank Elvira Nabiullina. In her opinion, the time has come to raise the key rate amid rising inflation. On June 11, the Central Bank raised the rate to 5.5%.
Ms Nabiullina today, June 15, presented to the State Duma a report on the work of the Central Bank for 2020.
“The economy has recovered to the pre-crisis level, and in many industries it has exceeded it and continues to grow, ”she said.
Commenting on the decision to raise the key rate again, the head of the Central Bank said that the regulator’s decision does not interfere with economic growth. She explained that the Central Bank “for quite a long time” kept the rate at a low level in order “not to clip the wings of the recovering economy.” “But now we have no doubt that our decisions are not an obstacle to growth,” said Elvira Nabiullina.
She stressed that the Central Bank will continue to raise the rate due to the continuing rise in inflation. “The steady rise in prices for a wide range of goods in recent months shows that this period cannot simply be waited out. The Central Bank must use its tools to bring inflation back to the target, otherwise it threatens the well-being of people, ”the head of the regulator is convinced (quoted by Reuters).
Before the March meeting of the board of directors, the regulator kept the rate at 4.25% four times, in March it was raised to 4.5%. In June, the head of the Central Bank said that the rise in inflation in the country is of increasing concern. The Ministry of Economy admitted that by the end of the year inflation will be higher than the forecast.
Read about the rate increase by the regulator in the publication of Kommersant “Shire step”.