Nabiullina says higher key rate doesn’t hinder economic growth

ST. PETERSBURG, Jun 3 (PRIME) -- A higher key rate of the central bank does not hinder Russia’s economic growth, demand has almost recovered, the regulator’s Chairwoman Elvira Nabiullina said at the St. Petersburg International Economic Forum on Thursday.

“We have started to return to a neutral monetary policy, and delaying such moves can result in the necessity of raising the rate faster and higher, which we can encounter later. In our opinion, it does not hamper economic growth. We can see that demand has almost recovered,” she said.

Russia’s inflation becomes more stable, Nabiullina also said.

“We believe that inflation has a significant amount of stable components. We have a higher inflation and higher inflationary expectations,” she said.

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