— This mechanism works in any country singapore telegram data with a market economy, and Russia is no exception. We managed to reduce inflation to 4% by 2017 after its takeoff in 2014–2015. Back then, everyone doubted that this was possible in principle, because inflation had never been so low before.
From very recent experience, we can recall
the sharp increase in the rate in the spring of 2022. In February-April, due to unprecedented sanctions, prices literally skyrocketed. The expert community made downright apocalyptic forecasts for both inflation and the ruble exchange rate. But they did not come true. In the second half of the year, prices on average practically did not grow. And the exchange rate actually strengthened.
— People still don’t believe that the Central Bank will achieve inflation of 4% per annum.
People do not believe it because there
have been more periods of rapid price growth and they are better remembered, although in 2017–2019 , inflation was at our target. But banks understand that as inflation decreases, rates will also decrease. By the way, this is why long-term deposits are now offering lower yields than short-term deposits. At the Central Bank, we do not just believe that inflation of 4% per year can be achieved again. We understand the reasons for price growth and know what mechanisms allow us to contain it. Our main tool is changing the key rate. It affects interest rates, lending and savings activity, demand and, ultimately, inflation. However, a change in the rate does not affect the digital future in 2025: key trends that will redefine global tech infrastructure the economy immediately, but after 3–6 quarters. During this time, other events may occur that will affect the rate of price growth. Here, the Central Bank alb directory works with uncertainty factors and forecasts, not with completed events. It is very important to respond in a timely manner to changes in the economic situation.