If necessary, the Central Bank of the Russian Federation can slow down the key interest rate decrease, the Bank does not foresee the risks of its increase, said the Governor of the Central Bank of Russia Elvira Nabiullina at the International Financial Congress on Thursday.
“Despite the ongoing reduction of rates, our policy still remains moderately tight, thus we have this looseness and we can for the time being prevent the rate hike. We can slow down lowering of the rate if necessary, but we do not see such rate increase risks,” said the Governor of the Central Bank.
Elvira Nabiullina noted that as a result of the normalization of monetary policy in the United States, capital starts to leave the emerging markets, which, in turn, tampers with the exchange rate and brings inflationary risks. Therefore, many developing countries started increasing rates.
Source: Interfax News