The Central Bank will begin to fight with rising prices in Russia in a new way. This was told by the head of the Elvira Nabiullin regulator, writes Kommersant.
According to her, the Central Bank is starting to the “review” (revision) of monetary policy (DCP) – includes several elements, the main of which: management of the key rate and the norm of mandatory reservation for banks.
International organizations recommend revising the DCP every five years. The Central Bank was last made it at the end of 2014, when refused to mandatory currency interventions and binding the ruble exchange rate to the Bivarny Basket, going to the Floating course.
It is expected that primarily the Central Bank will abandon the current approach to regulating the level of inflation. Now the regulator has the target value (target) in four percent of per annum, but recently it fails.
According to Nabiullina, the “form of target” will be changed, however, as it happens, the head of the Central Bank did not specify. One possible options is to assign a certain deviation from the target, for example, one percentage.
Also Nabiullina also told about the actions of the largest central banks of the world. Most of them in the near future can tighten their policies, dramatically raising the rates. This will lead to the influx of investors on their markets and outflow from developing countries, including Russia. Such a situation of Nabiullina called one of the nearest possible risks.
to other risks, according to the head of the Central Bank, include “structural changes on labor hand” (unemployment growth), large-scale investments of banks in the development of ecosystems and green transition in Europe and the United States, capable of changing the structure of foreign trade.