Russian Central Bank close to its goal

Russian Central Bank close to its goal

Inflation in Russia has dropped to 4.1% in annual terms, Chairman of the Central Bank Elvira Nabiullina said.

"In March, inflation has dropped to 4.3%. As of April 17, inflation has already dropped to 4.1% in annual terms, which is very close to the targeted goal," she stressed.

The Bank of Russia's targeted inflation this year is 4%.

Chairman of the State Duma Committee for Economic Policy, Innovative Development and Entrepreneurship, Anatoly Aksakov, said in an interview with Vestnik Kavkaza that current inflation rate can help to improve the growth of population's income.

"We see in nominal terms that wages are gradually beginning to grow, especially when compared with the nominal prices level," the expert noted.

He added that lower inflation will allow the Central Bank to lower the interest rate, which in turn will give population and entrepreneurs access to profitable loans.

"We will achieve a figure that allows us to maintain economic balance without reducing or increasing inflation. That's Central Bank's main goal," he added.

A professor at the department of the stock market and investments at the Higher School of Economics, Alexander Abramov, said he believes that when the Central Bank reaches the targeted level of 4% it will send a certain signal to business - it will show when the Central Bank will reduce the interest rate. 

"Business is unlikely to take any active actions, because everyone understands that if the Central Bank reaches its goal, it means that it should soon reduce the interest rate. Until it happens, entrepreneurs will prefer to not do anything," he stressed.

The expert thinks that in the future, Russia's Central Bank will continue to adhere to the policy of inflation targeting. "Our Central Bank follows world trends, and until the another targeting policy becomes more popular, the Bank of Russia won't change its priorities," he concluded.

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