Nabiullina Stresses Need to Maintain High Key Interest Rate

© ЦБ РФ

In the current situation in Russia, it is important not only to reduce inflation but also not to hinder the economy from building up its potential. This was stated by the head of the Bank of Russia, Elvira Nabiullina, at a meeting of the relevant committees in the State Duma (the lower house of the Russian parliament).

"We cannot rush to lower the key interest rate. This would lead to the opposite result: an increase in interest rates in the economy, higher prices, and new challenges for our businesses," noted the head of the Central Bank.

She described the period of tight monetary policy as a necessary stage on the way to lower rates.