Support The Moscow Times!

Russian Central Bank Chief Aims for 4% Inflation Rate

Russia's Central Bank chief Elvira Nabiullina Maxim Stulov / Vedomosti

Russia should aim for reducing inflation to 4 percent, but no lower, Russia's Central Bank chief, Elvira Nabiullina, said in an interview with Forbes.

Nabiullina's target inflation rate is higher than the 2 percent rate common in most developed countries, but decreasing inflation any further could cause new problems, she believes.

"Mass deflation is dangerous," she said. "It decreases the stimulus for investment. In order to avoid this, the inflation level should be around 4 percent." Inflation above 4 percent will also halt investment, she added.

The Central Bank's goal should now be ensuring stable, low inflation and, as a result, stable and low interest rates on loans. These factors are more important than the ruble exchange rate, Nabiullina said.

Russia's annualized inflation for 2016 stands at 6.09 percent, according to the StatByuro statistical website. The Central Bank aims to reach its 4 percent target in 2017.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more