Nabiullina doubts that the distribution of cheap loans will support the Russian economy – Rosbalt

The distribution of cheap loans in the current environment is unlikely to support the Russian economy. Elvira Nabiullina, Chairman of the Central Bank of the Russian Federation, stated this at a briefing today.

She, in particular, pointed out that “unemployment today is lower than ever, and it will be difficult for companies to recruit new workers when expanding production.” “Under these conditions, the distribution of cheap loans will not be able to quickly expand output, but will continue to spur demand,” TASS quotes the head of the Central Bank.

Recall that earlier on Friday the Board of Directors of the Bank of Russia raised the key rate immediately by 1 percentage point to 9.5% per annum, and the regulator admitted that “inflation is developing significantly higher than the October forecast” of the Central Bank.

Commenting on the increase in the key rate, Nabiullina did not rule out its rise to a two-digit level, reports PRIME.

As the head of the Central Bank warned, the acceleration of annual inflation in the Russian Federation indicates the risks of overheating the economy, the current pace is not balanced and sustainable, the main challenge for future growth is the shortage of labor, Interfax notes.

At the same time, Nabiullina stressed that the normalization of monetary policy in the country will be determined by the rate of decline in inflationary expectations, however, the reduction of the key rate will be slower and longer than its increase last year.

We add that earlier (after the meeting) the Central Bank of the Russian Federation predicted that inflation in the country by the end of this year would be at the level of 5-6% instead of 4-4.5%, which was previously predicted by the regulator.