Cbanker urges to abandon administrative price cap - Business Wire - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

Cbanker urges to abandon administrative price cap

MOSCOW, Apr 7 (PRIME) -- RussiaТs central bankТs Chairwoman Elvira Nabiullina on Wednesday urged to quickly abandon the administrative price cap, as it distorts price indicators and discourages the development of production.

УIn my opinion, the administrative price cap should be abandoned as soon as possible, because it distorts price indicators in the economy and discourages the development of production,Ф she said at a forum.

The damping mechanism for smoothing price fluctuations has shown itself to be quite effective on the oil products market, but it is important not to get carried away with it and to act carefully, Nabiullina said.

УThe damper, in my opinion, should be transparent, understandable for manufacturers, so that they have incentives to develop production. In my view, there should be a budget-neutral damper, but this requires discussion,Ф she added.

Economic Development Minister Maxim Reshetnikov said the government should not widely use the policy of damping mechanisms to smooth out the influence of world prices on the domestic market, and it is necessary to use other instruments.

He also said the ministry considers it unreasonable to introduce a damping mechanism in Russia to smooth out fluctuations in prices for metal products, as the introduction of export duties will very quickly lead to deficits.

УIn the metals sector, despite serious pressure from line ministries, we believe that the introduction of some kind of dampers is not only unreasonable, but by and large also impossible,Ф Reshetnikov said.

The introduction of export duties on metallurgical products may seriously disrupt incentives for manufacturers to produce products, he said. УWe will just very quickly face deficits right at the second step,Ф he said.


07.04.2021 12:08
Share |
To report an error select text and press Ctrl+Enter
Central Bank Official Rate
1W 1M 1Y
EUR 91.7809 +0.1617 10 apr
USD 77.1657 +0.0646 10 apr
Stock Market Indices
1D 1W 1M 1Y
micex 3486.03 -0.62 18:50 09 apr
Stock Quotes in RUR
1D 1W 1M 1Y
gazp 222.15 -0.96 23:14 10 apr
lkoh 5937.00 -1.19 23:14 10 apr
rosn 538.30 -2.00 23:14 10 apr
sber 281.11 -0.98 23:14 10 apr
MICEX Ruble Trading
1D 1W 1M 1Y
EURTD 91.8175 +0.4875 14:59 09 apr
USDTD 76.7525 -0.3100 17:44 09 apr