Previously, the regulator lowered the key rate by 1 percentage point for the first time in five years – to 4.5% per annum, renewing its historical minimum.
– Thanks to the results of previous years, the trust of population and business to the price stability we now have the ability to do these steps without the risk of “inflationary spiral”, – said Nabiullina.
Thus, concluded she, loose monetary policy will not result in the devaluation of wages and savings. Thus it will contribute to keeping inflation at the target of the Bank of Russia – close to 4%.
According to Central Bank estimates annual inflation at year end will be at the lower limit of the forecast range of 3.8-4.8 percent.
Nabiullina has reminded that earlier – since last June, the regulator lowered the key interest rate from 7.75% to 5.5%.
– given the reduction in the key rate since the middle of last year, loans to enterprises and households needs to become cheaper, she said.
Central Bank Policy will contribute to economic recovery, coupled with the measures from the Cabinet. As recalled by the head of the regulator, from the beginning of the pandemic to take steps to support affected industries and citizens, and now the government is preparing a national economic recovery plan.
