Nabiullina Responded on Plans to Increase Inflation Target

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The Bank of Russia does not plan to raise the inflation target of 4%, Bank of Russia Governor Elvira Nabiullina announced at a meeting of the Federation Council.

Yesterday, the head of the Central Bank reported that inflation will approach the target of 4% in the second half of 2026. She also explained that it is impossible to quickly reduce the key interest rate due to the risk of losing the progress already achieved.

Speaking about the absence of plans to raise inflation targets, Nabiullina emphasized that Russia is a country with one of the highest targets.

"Most countries, including those with emerging economies, even if they started with a target of around 4%, there were rare cases, but more often they lowered this target. The discussion is rather about lowering the target, rather than raising it," Nabiullina stated.

Additionally, the head of the Central Bank assessed the state of the national currency. According to her, there is no overstrengthening of the ruble now, it is "rather weakening."