The Central Bank wanted to fight with the increase in prices in Russia in a new way, writes Kommersant with reference to the regulator’s documents and the statement of the head of his profile department Alexey Kakotkin. Two years later, the goal (Target) on the annual level of inflation, which is the main element of monetary policy (DCP) of the Central Bank, can be revised towards a significant decline.
Central Bank published a plan for preparing the review of the DCT. It has six points, the first of them is indicated as “inflation target format.” According to Krabin, the review (actually the analysis for the need for revision) of monetary policy implies a whole system of analytical projects, meetings, consultations and public events.
their result should be the preparation of the themed report of the Central Bank on the goals and methods of the DCP. It is expected that there will be a question about the need and feasibility of reducing Target on annual inflation, which is currently set at the level of four percent.
Economists expect under certain conditions (if the analysis conclusions and recommendations will contribute to this) the target value of inflation can be reduced to 1.5-2.5 percent per annum. The updated parameter may come into force in 2023.