Central Bank: inflation in Russia in 2017 should be 4%

Central Bank: inflation in Russia in 2017 should be 4%

NOVOSIBIRSK, January 28. Inflation in Russia in 2017 should reach 4%.

This was announced in Novosibirsk first Deputy Chairman of Bank of Russia Sergey Shvetsov.

“To reduce interest rates inflation should be 4%. We hope to reach this level of inflation in the next year, in 2017. And this, of course, will be accompanied by lower interest rates,” – said Shvetsov.

He stressed that without inflation the decrease in interest rates in the Russian economy it is impossible, therefore achieving a level of 4% is one of the main priorities of the Bank of Russia.

Earlier, Deputy Finance Minister Alexei Moiseyev said that the Ministry considers the actual objective of reducing inflation to 4% in 2017. “To bring inflation to 4% in 2017,” he said, adding that for inflation has fallen substantially necessary “the joint efforts of the Central Bank and the government”.

The forecast of the Central Bank

The drop in inflation to 4% in the medium term is the main priority of the Bank of Russia within the framework of the policy of inflation targeting. According to the forecast of the Central Bank of the Russian Federation, inflation in Russia in 2015 will amount to 12-13%, in 2016 – 5,5-6,5%, and by the end of 2017 will be released on the target level of 4%.

Moiseyev also noted that it is necessary to create conditions for the development of domestic sources of long-term investment. He explained that has a view of insurance companies and pension funds.

According to the UN, the level of inflation in Russia by the end of 2016 will be 10.5%, and in 2017 will be reduced to 7.1%, while GDP growth in the next two years will change from zero to 1.2%.

See also

The consensus forecast: fiscal risks will not allow the Central Bank to lower the rate