Nabiullina allowed a key rate hike

Photo of author

By admin

The Bank of Russia admits an increase in the rate in 2021, everything will depend on the information received, said the head of the Central Bank Elvira Nabiullina in an interview with Izvestia.

She noted that at the moment the regulator is observing a steady recovery in business activity and final demand in a wide range of sectors of the economy, as well as an increase in inflationary pressures. She stated this, answering a question about the possibility of starting a transition to a neutral policy this year.

According to Nabiullina, the Central Bank sees a transition to a neutral rate of 5-6% in 2021-2023. The head of the Central Bank stressed that this is necessary to prevent the excessive growth of inflationary pressure from developing, “so that medium-term inflation is kept at the level of our goal.”