Financial Markets: Increasing Complexity, Maintaining Stability

3–5 July 2019, ST. PETERSBURG

    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.