Siluanov revealed a way to avoid accelerating inflation in Russia

Without monetary tightening (monetary policy) Central Bank and raising the key rate will accelerate inflation in Russia will become inevitable. The acceleration of consumer price growth will hit the financial situation of citizens, the head of the Ministry of Finance said Anton Siluanov. His words leads “Prime”.

The head of the department called the ongoing tightening of the regulator’s monetary policy “absolutely correct in the current situation.” In the context of large-scale international sanctions, pursuing a responsible financial policy is of particular importance.

“Maybe some people don’t like it, that the rate is increasing. But we cannot now spin an inflationary spiral, since this will hit people, the economy, and will eat up the income and gains that we have achieved in recent years,” Siluanov concluded during a speech at the VIII international forum Financial University “Russia and the world: new walls or new rules?”

At the end of October, the leadership of the Central Bank sharply raised the key rate by two percentage points at once – from 13 to 15 percent per annum. The regulator then urged not to expect a weakening of monetary policy in the near future against the backdrop of increasing inflation risks.

In the medium term, the threat of accelerating consumer price growth in the country will remain “significant,” the regulator believes. Against this background, the Central Bank raised inflation forecast in Russia for 2023 to 7-7.5 percent with a target of 4 percent.

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