Report: Cbank chairwoman sees Russia’s inflation near 4% target

MOSCOW, Oct 29 (PRIME) -- Russia’s inflation is seen near the target level of 4%, but disinflation factors will prevail in late 2020 and in 2021 due to the continuing coronavirus pandemic, Central Bank Chairwoman Elvira Nabiullina said in an interview with Rossiya 24 television channel on Thursday.

“The latest events have shown that inflation is near the target of around 4%. However, development of the pandemic, according to the latest data, will cause disinflation factors to prevail at the end of the present year and next year, and we really see some space for softening of the monetary policy,” she said.

“It will depend on the circumstances, the decisions we make, when and at which increment… Some parameters are possible here including reduction of the key rate and the key rate staying below what we assess as a neutral level for a longer time.”

Nabiullina also said that Russia’s banking sector is stable and healthy although there are problem banks.

“The banking sector is in a stable and healthy condition, and the first wave of the pandemic has demonstrated that banks in their current state are able to cope with such risks without reducing lending, and to restructure loans,” she said.

The chairwoman added that the main stage of purging of the Russian banking system has finished and the industry is being fine-tuned.

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