November 21, 2019 14:19
CBR still sees potential for monetary easing, IMF supports it (Part 2)
MOSCOW. Nov 21 (Interfax) - Central Bank Governor Elvira Nabiullina said in a speech in the State Duma that there is still potential for key rate decreases.
"We characterize our policy now as neutral. It's aimed, tentatively speaking, at keeping inflation at about 4%, because we've already gotten close to this goal, but we see that there's some potential for softening. Rates will continue to fall, and the main thing isn't just rate decreases, the main thing is that loans here are being prolonged, and that's needed for investments," Nabiullina said.
Credit is not the only source for increasing investments, but when banks and investors are both sure that inflation will remain at a controlled level for a long time, loan periods increase, she said.
"For that reason, we think it's necessary to pursue a neutral monetary policy for now, but we're pursuing a stimulating policy for banks, we adjust regulation in such a way that banks are interested in project financing - that is, new investment projects. They're interested in financing the development and expansion of production, not just mergers and acquisitions," Nabiullina said.
At the end of October, the CBR cut the key rate by 50 bps, to 6.5%. The next board meeting will take place on December 13.
The International Monetary Fund expressed support for the bank's approach to monetary easing in a statement published on Wednesday following a mission to Russia. The IMF said that if inflation remains below the target in 2020, as it expected to do, further rate cuts will be justified.
(Our editorial staff can be reached at email@example.com)
February 23, 2020
Armenia to close border, suspend air traffic with Iran for 2 weeks - Pashinyan (Part 2)
Georgia restricts direct air flights with Iran (Part 2)
Russian military tracking U.S. destroyer, which sailed into Black Sea (Part 2)
U.S. military presence in Middle East destabilizes situation in that region - Russian Deputy FM Bogdanov
Coronavirus not detected in 4 Iranians who arrived to Tbilisi from Tehran - Georgian Health Ministry
Info about Russian Aerospace Forces aircraft stopping Turkish military convoy in Idlib governorate fake - military source
Calling new conference on Libya in Moscow unnecessary - Russian Deputy FM Bogdanov
Consular service of Armenian embassy in Tehran suspends operation due to spread of coronavirus across Iran
Armenia to close border, suspend air traffic with Iran for 2 weeks - Pashinyan
Russian military tracking U.S. destroyer, which sailed into Black Sea
RUSSIAN MILITARY TRACKING ACTIONS OF U.S. DESTROYER, WHICH SAILED INTO BLACK SEA - RUSSIAN NATIONAL DEFENSE CONTROL CENTER
Georgia restricts direct air flights with Iran
Kremlin urges not to build negative scenarios concerning development of Russian-Turkish relations because of Idlib
New U.S. Ambassador to Russia John Sullivan, who has recently started his mission in Moscow, has given an interview to Interfax in which he speaks about priorities of his work and assesses the prospects of developing bilateral relations.
The En+ Group effectively turned a new page in its corporate history in 2019. Now the group has a unique governance scheme for Russia - without a domineering shareholder and a loyal majority on the board of directors. The board chairman, Lord Gregory Barker, is convinced that the changes adopted in the framework of the plan he devised to get the company removed from the U.S. sanctions list will ultimately do the company and its shareholders good, irrespective of the deal with OFAC. Lord Barker told Interfax in an interview about the work of the new En+ board, dividends and long-term strategy.
Ambassador of the United Kingdom to Russia Laurie Bristow, who is leaving his post, has given an exclusive interview to Interfax in which he speaks about prospects of relations with Russia, arms control, the situation in Syria and surrounding Iran, as well as other topical problems on the international agenda.