The Central Bank’s aim with respect to reducing inflation is to achieve investment growth of the GDP, according to Governor of the Central Bank Elvira Nabiullina.
“Low inflation is essentially a condition for investment type of economic growth,” Ms.Nabiullinasaid during her speech at the International Financial Congress.
According to her, a drop in inflation would help reduce inflationary expectations and thus increase confidence in the Central Bank’s policy.
“Wehaveessentiallynowtransferredfromactionsto prevent an inflationary spiral to a policy of sustainable reduction in inflation and inflationary expectations. I am convinced that, acting consistently and smoothly, we will be able to achieve an inflation rate of 4% by the end of 2017 without influencing economic growth,” Ms. Nabiullina noted.
She stated that 4% was low only by Russian inflation standards, while the level is lower in other countries.