Central Bank of Russia Increases Interest Rates: Head Elvira Nabiullina Discusses Reasons for Decision




Reasons for the Central Bank of Russia’s Decision to Increase Interest Rates

The head of the Central Bank of the Russian Federation, Elvira Nabiullina, spoke about the reasons for the decision to increase interest rates, sending a signal to the markets that the Central Bank has all the necessary tools to ensure stability.

The Most Striking Statements

Below are the most striking statements made by a Russian official at a press conference held after the announcement of the decision to increase interest rates:

Increase in Interest Rates

The Central Bank of Russia announced an increase in interest rates amid the fall of the ruble.

No Risks for Financial Stability

– The Central Bank of the Russian Federation does not see risks for the country’s financial stability if the national currency falls.

Moderate Growth Rate

The growth rate of the Russian economy in the second half of the year will be more moderate.

Increased Interest in Banks

We expect increased interest among citizens in placing their money in banks.

High Interest Rates

– Interest rates will remain high until inflation stabilizes.

Possibility of Global Economic Downturn

– There is still a possibility of a sharper “downturn” in the global economy.

Decision to Increase Main Interest Rate

Earlier today, the Central Bank of the Russian Federation at a meeting of the board of directors decided to increase the main interest rate by 1-13% per annum.

Inflation Risks

As for the reason for the decision to increase interest rates, the Central Bank of the Russian Federation stated that inflation risks are still high.

Source: News


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