Nabiullina said the intention of the Central Bank to reduce the key rate


As Nabiullina said in the program “Vesti on Saturday”, the Bank of Russia intends to reduce the key rate, however, will take into account the inflation factor. “We should not allow the situation when we bet will reduce, and inflation will grow”, – quotes its “Interfax”.

The head of the Central Bank called the illusion of the assumption that the rapid decrease in key rates to spur economic growth. According to her, in this case, it is possible to achieve only short-term effect. Necessary for economic growth to pursue structural reforms and improve the investment climate.

“The economy has to be transformed in the direction of diversification. Need time to increase investment, to increase production. We expect that the economy will show positive growth, will start to enter positive zone. And in 2017, will go to sustainable positive,” she explained.

March 24, Nabiullina said that the key rate will decline as the slowing of inflation. Also important, according to her, long money market rates, which serve as a benchmark for long-term loans. “During the time that we left the rate unchanged at 11%, long rates declined. They decreased from 11 to 9-9,5%”, — said Nabiullina

Earlier at the Congress of entrepreneurs about the key rate was made also by the head of economic development and Finance. The head of the MAYOR Alexei Ulyukayev expressed the view that the slowdown in inflation gives a reason to lower the key rate of the Central Bank, and inflation, he said, will be below 8%. Finance Minister Anton Siluanov stressed that strict control of budget deficits will enable the Central Bank to reduce rates in the future.