Russia in ‘no hurry’ to lower inflation: central bank chief

RUSSIA’S central bank is trying to gradually lower inflation, but is in no hurry to do so, its chief said on Tuesday (Nov 15).

Elvira Nabiullina warned inflation would likely remain high for some time as the economy undergoes what she has called a “massive structural transformation” in the face of unprecedented Western sanctions.

“Currently, we are gradually lowering inflation. We are not in a hurry, realizing that while the economy is restructuring, price growth may remain elevated for some time,” she told Parliament.

Inflation is currently running at 12.5 per cent on an annual basis – ahead of the bank’s official 4 per cent target which Nabiullina told Parliament Russia should achieve by 2024. The central bank has forecast inflation to fall to 5-7 per cent next year.

The bank expects economic growth to fall by 3-3.5 percentage points this year before picking up in the second half of 2023. Growth should be 1.5-2.5 per cent over the next two years, Nabiullina added.

“Future growth will depend on the success of the structural transformation of economy; for this financial stability is essential. Obviously, higher inflation will slow down such a transformation,” she said. REUTERS