Bank of Russia Governor Elvira Nabiullina spoke about the regulator’s plans for 2021. According to her, this year the Central Bank will maintain a soft monetary policy, which will be aimed at supporting the recovery of the Russian economy. TASS reports.
According to Nabiullina, the potential for cutting the key rate has been exhausted. Its further reduction may lead to an additional increase in pro-inflationary risks.
Earlier it was reported that the Central Bank on February 12 kept the key rate at the same level – 4.25 percent per annum. The decision was justified by the fact that the recovery in demand is happening faster and is more sustainable than previously expected.
The rate at 4.25 percent is a record low for the modern history of the country. The Bank of Russia installed it for the first time in July last year. This is the fourth time the regulator has kept it unchanged.
The key rate is one of the main instruments of monetary policy, the purpose of which is to regulate the inflation rate in the country. According to the Central Bank’s plan, it should be close to four percent.