Pres aide: Russian monetary policy too tough, inflation drops fast

MOSCOW, Jul 11 (PRIME) – Rapid decline of Russian inflation means that the monetary policy is too severe, presidential aide Andrei Belousov told reporters on Thursday.

“Inflation is falling very fast, faster than we planned, which is a sign that we were too tough on the monetary policy. Besides, the broad monetary base is falling, it started to fall at the end of last year which had never been seen before, a decrease in real terms began,” Belousov said.

The gross domestic product (GDP) is to grow by 1% in January–June and the rise can exceed the official forecast of 1.3% in 2019 as the monetary policy can ease, he said.

“The GDP in the first half of the year has almost been assessed, we only have to complete the calculation. I think, it will be about 1%,” Belousov said. “The central bank must decide independently. But if the easing policy is cautious and takes into account the effect on the exchange rate fluctuations of the ruble… This must have an effect.”

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