Speaking at the State Duma of the Russian Federation, the head of the Central Bank of Russia, Elvira Nabiullina, confirmed that the regulator does not “make discounts” upon reaching the 4% inflation goal. This is reported by RIA Novosti today, October 31.
Nabiullina participated on Thursday in a joint meeting of the Duma committees on financial market, budget and taxes and the economic policy committee.
“High inflation can only be beneficial for those companies whose goods people will be forced to buy regardless of rising prices. This business will maintain margins, but citizens pay for it, and for all other businesses, inflation is a huge factor in the uncertainty of future financial results. With high inflation, economic growth cannot be sustainable; Rapid growth will be followed by recession, and overall growth, even if it is negligible, is unlikely to satisfy anyone, as examples from many countries and our past demonstrate. “ – said the economist.
Elvira Nabiullina especially highlighted the fact that high inflation also creates unpredictability, since “It is a dangerous illusion to believe that rising inflation can be reliably maintained within some corridor.”.
“So we are not going to do any discounting here to achieve our 4% target. In our opinion, this is the maximum that can be considered price stability.” – he summarized.
EADaily Earlier he also reported on the warning expressed by the head of the Bank of Russia to the country’s government.
