The head of the Central Bank discussed with the members of the key rate – BBC Russian

The head of the Central Bank discussed with the members of the key rate – BBC Russian

• January 27, 2015

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Nabiullina connects the possibility of lowering the key rate with a slowing of inflation in the country – which is not expected

Chairman of the Central Bank of Russia Nabiullina Tuesday night discussed with representatives of parliamentary factions control policy and, in particular, the possibility of lowering the key rate.

The meeting was held in the office of the Central Bank in Moscow and ended around 9 pm.

“The impression is left of a positive meeting. Of course, not all the items we agreed. But a lot of things from the fact that the central bank is doing now become at least understandable,” – said the BBC BBC results of the meeting one of its members – Deputy faction “Fair Russia” in the State Duma Mikhail Emelyanov.

Last month, the Bank of Russia raised the benchmark lending rate of commercial banks in the country to 17%, which effectively denied access to many companies to new borrowings. Central Bank was forced to go for it, to prevent further collapse of the ruble (though a day hike ruble sank to a record value).

On Friday, January 30, a regular meeting of the Board of Directors of the Bank will determine whether lowering key rate.

“The meeting was closed. Those predictions that have been made [by the probable decrease in rates] – I do not want to be the person who voiced them. It’s still the prerogative of the Central Bank”, – said Emelyanov .

Most economists believe that the Bank of Russia will not agree to a decrease in an environment where inflation has accelerated, and in the spring, according to the forecast of Economic Development, will have peak annual rise in prices – 15-17%. High rate, in addition to the risk of devaluation, partly relieves and inflation risks.

In January Nabiullina itself directly linked the possibility of a rate cut only with the formation of a stable trend to slower growth in prices.

“The Board of Directors CB 30 January will decide on the level of rates based on an assessment of inflation risks, the current state of the economy and forecast of its development “- distributed it to the press service of the Bank of Russia on January 21.

Mikhail Emelyanov: direct speech

“The impression is left of a positive meeting. Of course, not all the items we agreed. But a lot of things from the fact that the central bank is doing now become at least understandable.

discussed monetary policy, the policy of currency regulation. The opposition MPs have expressed concern about the high rate of the key that makes loans expensive. Elvira Nabiullina explained the key rate increased the need to fight inflation, although acknowledged that non-monetary factors also play an important role in inflation.

It is reasonably hoped for special measures to be taken to support a variety of industries in terms of concessional lending to businesses, interest rate subsidies and so on. The meeting was closed. Those predictions that have been made [by lowering the key rate] – I do not want to be the person who voiced them. This is still the prerogative of the Central Bank.

According to consensus estimates, with which I agree, and the peak of a deep fall of the ruble to a high degree passed. Some speculative factors can influence it, such as rating agencies. Another thing is that we are coming, and other difficult tests: in particular, the increase in interest rates in the United States in the second quarter.

Ms Nabiullina was very open and frank as far as could be. Although the contradictions in our evaluation policy of the Central Bank still remained “.