“In our situation, this need, of course not. We have and at the rate there is a large backlog, and other measures which will support both citizens and consumer activity and profits”, – said Nabiullina. She recalled that the support of demand through direct payments to citizens resorted to when all other measures have been exhausted. That is, the base rate reduced to zero or negative values, conducted an extensive program of redemption of securities from the market, “bloated” balance sheets of Central banks.
Nabiullina made a mortgage below 8 percent until 2024
According to Nabiullina, the effect of such measures is difficult to assess. “A lot of questions to ensure that the money will get to consumers and will cause a corresponding increase in consumption propensities and stimulate demand,” she said.
Now support demand through direct payments, in conditions of deceleration of the economy due to pandemic coronavirus is being discussed in the United States. In particular, families with incomes less than 75 thousand dollars a year offered to pay $ 1,200 for each adult and $ 500 per child.
This is one example of demand stimulation through the so-called “throwing money from a helicopter”. Previously the world’s leading Central banks almost zeroed out their rates and launched a large-scale program of quantitative easing. The Bank of Russia on 20 March announced that it is maintaining the key rate unchanged at 6% per annum.