Russian Economy: Central Bank chief’s statement in State Duma
The national economy is in the “breaking point” and inflation slowdown can be expected in coming months
MOSCOW, November 19. /TASS/. The key rate is expected to become lower in the next year if there are no new shocks, Governor of the Bank of Russia Elvira Nabiullina said at the plenary session of the State Duma, the lower house of the Russian parliament.
The Board of Directors of the Central Bank always addresses the situation in regions “when making every decision on the key rate.”
Economic shifts
Russia is for the first time in the situation “when almost all resources are utilized in the economy.” The national economy currently sees “serious structural shifts,” signaled in the first instance by record high investments.
Inflation
The national economy is in the “breaking point” and inflation slowdown can be expected in coming months. “This will be the confirmation that the monetary policy has finally reached required toughness to curb the price hike, with consideration of all circumstances influencing inflation,” Nabiullina said. The regulator is also concerned of possible risks of excessive borrowings by majors, she added.
It strikes me that with such a high interest rate surely money must be flowing into Russia from investors home and abroad? perhaps this is part of the reasoning, to shore up the economy. I believe there are concession for housing for families but don’t know much about how people… Read more »
The Paul Keating Labor government deregulated the banking industry in Australia and introduced the “Fringe Benefits Tax” in late 1980s, making life more difficult for working class people. Now with a deregulated banking industry there should be Russian Banks within Australia, but there are none, so Australians cannot enter a… Read more »
Yes the FBT was a dreadful game changer for small business across the board and anyone employed by those businesses. labor doing liberal dirty work as usual. Re Russia’s interest rates, i’m not talking about investment from foreigners, I meant Russian wealth abroad and in Russia, attracting it back, anyway… Read more »
I suspect inflation is the result of oligarchs seizing the opportunity of a boom to price gouge, the bankers not wanting to lose ground join in, and take the opportunity to use the intelligence they have on all their clients to push some of them into default. Then they foreclose… Read more »
The constrained serious professional looking Elvira Nabiullina
All is well with a wide smile and bursting confidence.
For some it is not so easy and there are challenges …
https://www.youtube.com/watch?v=25AUCNZKEnY
Hi Paul,
I used a file photo. Please look at the TASS report for the photo that was taken during her speech.
I’ve seen the images of the Māori doing the Haka. (Know the Haka from Rugby). I do not know why those old agreements must now be messed with.
To be straight forward Amarynth, if I were a Russian citizen and resident I would question the eight percent inflation rate and the twenty-one percent interest rate because Russia is IMF free and has vast amounts of self sufficient resources. Russian Central Banking is not well explained and consider two… Read more »
Hi Paul Before we talk Russian Central Bank, we have to talk sanctions. Between February 22, 2022, and January 11, 2024, territories and organizations worldwide imposed over 16,000 restrictions on individuals from Russia. Furthermore, roughly 9,300 list-based sanctions were placed on entities over that period. The sanctions were first placed… Read more »
Amarynth, good to see you fired up, but I’m not fully convinced and here is why. The Russian Central Bank can authorise the printing of money for their country’s infrastructure projects, so why not classify public housing as infrastructure and provide cheap adequate housing for all Russians ? What Russians… Read more »
Not fully convinced of what Paul? That Nabiulina did a good job, even sterling? I forgot to mention, Russia is at war as well. For Russia’s house plans and programs, use Yandex and do a search. There are many but I don’t keep up with that level. Oligarchs – they’ve… Read more »