Nabiullina spoke out against an "experiment" of cutting the key rate amid high inflation

TV Rain:

Nabiullina: state companies are getting more and more loans, but the Central Bank does not see productivity growth. At the Bank of Russia's Financial Congress, Central Bank Governor Elvira Nabiullina said that there is an "enormous productivity gap" in the Russian economy: there are efficient enterprises with high productivity, while at the same time companies continue to operate that "pull resources onto themselves with lower returns." There are effective…

Nabiullina spoke out against an "experiment" of cutting the key rate amid high inflation

The head of the Central Bank said this at the Financial Congress.

According to Elvira Nabiullina, there are no "fans of high rates" at the Central Bank. "Credit must be accessible. And there must also be fair competitive conditions here, but that is not a question of the key rate, it is a question of inflation," she said.

She added that the Central Bank "could have run an experiment and simply lowered the key rate," but then they would have gotten "a sharp rise in inflation and fallen into stagflation."

Responding to German Gref's suggestion to still "give it a try," Nabiullina called it a dangerous "experiment on one's own country."

Nabiullina also urged people to use the term "economic overcooling" "carefully," stressing that it is not a "scientific term."

🩷Subscribe to TV Rain on Telegram