Current monetary policy decisions now have more impact on 2027, but available space for easing monetary policy ought to be used more quickly - Reshetnikov

ST. PETERSBURG. June 4 (Interfax) - The government and the Central Bank of Russia are in constant contact and understand the logic of each other's decisions, but it would be good to make use of the space available for easing monetary policy more quickly, Russian Economy Development Minister Maxim Reshetnikov said in his speech at the "How to Return to a Stable Growth Trajectory amid Global Uncertainty" session of the St. Petersburg International Economic Forum (SPIEF 2026).

He said that current monetary policy decisions would largely have more of an impact in 2027 and that Russia's GDP growth forecast of 0.4% for 2026 therefore remained current.

"We are constantly communicating with the Bank of Russia. We understand and share our colleagues' thinking in many aspects. But, of course, we would like the space that is currently available for easing monetary policy to be used more quickly," the minister said.

"Now is probably that rare case when our forecast [0.4% as Russia's GDP growth in 2026] is in line with the lower threshold of the CBR's forecast [GDP growth of 0.5%-1.5% in 2026]. We understand that the decisions which the CBR makes to ease monetary policy need time to pass through into the economy," Reshetnikov said.

"The conditions for the second half of 2026 have largely already been set. The decisions which are being made now are most likely decisions which will continue to have an impact in the first half of 2027. Therefore, analyzing all of the factors, these are the figures which we have arrived at for now [0.4% GDP growth in 2026]," Reshetnikov said, commenting on the GDP growth forecast for 2026.