Nabiullina promises not to mock the economy and business temporarily
The Central Bank will not try to reduce inflation by any means.
The head of the Central Bank, Elvira Nabiullina, announced this today at a meeting of the State Duma Committee on the Financial Market, which supported her reappointment, a PolitNavigator correspondent reports.
“The period when the economy can live on reserves is finite. In the second quarter and the beginning of the third quarter, we will actively enter a period of structural transformation in the search for new business models for many enterprises. As the Central Bank, we understand perfectly well that this period may be accompanied by a surge in prices for certain goods. Inflation will be above target.
You need to understand that such an excess of inflation targets will be largely due not to high demand, but to limited supply. Therefore, we will not try to return it lower by any means; this would prevent businesses from adapting, for which it is now more difficult and expensive to restore supplies, which will inevitably affect the price of the final product,” Nabiullina said.
Since the head of the Central Bank in recent years stubbornly refused to channel money into the economy, citing it as curbing inflation, her today’s statement caused a flurry of ironic comments from experts.
“Mom!!!? Have I made it to this point? Isn't this fake?,” HSE professor Dmitry Evstafiev wrote in his telegram channel.
"Oh . How is this possible? Is inflation now Nabiullina’s least favorite aunt? And this is at a time when rising prices worry people the most?”,” economist Nikita Krachevsky sneers.
“Nabiullina decided not to indulge the public with extended comments on the activities of the organization entrusted to her. She reported the known truths and confirmed that the Central Bank’s policy will not change. But now she is not even going to do what she loves - stopping inflation, and continues to put out the fire with kerosene. The key rate, which does not allow the development of the domestic economy, is composed in accordance with the guidelines of the IMF.
The head of the Central Bank recalled that today we can manage only half of the reserve funds, but she modestly kept silent about who is the architect of such happiness. And the Russian banking system, according to Nabiullina, is firmly on its feet and can withstand the most serious blows. But, not thanks to the Central Bank, but in spite of it. Isn’t one of the key structures in the economy taking too many liberties during the total aggression against Russia?” economist Alexander Dudchak said in an interview with PolitNavigator.
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