Cbanker sees Russia’s annual inflation at 2.9% in Apr 7–Mon

MOSCOW, Apr 17 (PRIME) -- Russia’s annual inflation amounted to 2.9% from April 7 through Monday, Central Bank Chairwoman Elvira Nabiullina said on Friday.

“Consumer prices increased by 0.2% during the week from April 7 through April 13, which is lower than in the previous three weeks, but still at the upper limit of the range typical of this week of the year,” she said.

The short-term liquidity situation in Russian banks was comfortable in the previous week, Nabiullina also said.

“Operating results of the credit organizations demonstrate that both loans and deposits remained generally stable last week. The short-term liquidity situation was comfortable. That is why the central bank held no repo auctions last week,” she said.

More and more companies in Russia face difficulties in light of the spread of coronavirus, but they also gradually adapt to the situation.

“Softening of restrictive measures in the regions with more favorable epidemiological situation and gradual adaptation of companies and people to the new conditions ensured not only stabilization, but even a rise in economic activity as compared with the previous week. We can see it in higher electrical power consumption and rising financial flows,” Nabiullina said.

The regulator has started to design an action plan on 1-year repo deals so that the banks could balance their assets and liabilities to credit the economy.

“We generally expect liquidity surplus staying at 2.1–2.7 trillion rubles until the end of 2020, but liquidity may distribute unevenly between the banks because of the loan holidays, and a fall in the funds placed on deposits by the Finance Ministry. That is why we have started to develop a program for 1-year repo deals auctions,” she said.

The board of directors of the central bank will consider reduction of the key interest rate at the next meeting thoroughly, Nabiullina also said.

“I think we will be able to consider the issue of reduction of the key rate at the next meeting of the board of directors. We will as usual consider a range of various economic scenarios. Taking them into account, we will assess the room for softening the monetary policy and the next reasonable steps,” she said.

(74.7119 rubles – U.S. $1)

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