Russian finance minister sees no constraints on monetary policy easing arising from fiscal policy

MOSCOW. Sept 21 (Interfax) - The Russian government's planned budget deficit of around 2% of GDP for 2027 poses no risks, and fiscal policy has done everything possible to facilitate the Central Bank of Russia easing of monetary policy, Russian Finance Minister Anton Siluanov said at the Moscow Financial Forum.

Siluanov noted that a number of measures regarding fiscal consolidation had been adopted.

"Recognizing this entire [challenging] situation, we have already devised a series of measures. Just a couple of months ago, we prepared further steps for fiscal consolidation. We have structured the budget with a deficit that presents no significant risks, at around 2% of GDP," Siluanov said.

"The main thing is that we have aligned our approach with the Central Bank. After all, what matters today? What matters is that inflation, inflation expectations, and interest rates come down. The Central Bank is constantly monitoring the projected budget deficit balance for the three-year period, forming its monetary policy based on that. We are all watching monetary policy, waiting for Elvira Sakhipzadovna [Nabiullina, Central Bank Governor] to begin easing it. We have done everything to ensure that such opportunities arise and are available for Elvira Sakhipzadovna," Siluanov noted.

Nabiullina previously said that the Central Bank projects a primary structural federal budget deficit of 2% of GDP for 2026, 1% for 2027, and 0.5% for 2028.