(Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.
Russia's central bank will consider deeper monetary easing in the months ahead, Governor Elvira Nabiullina said, after a surprise interest-rate cut earlier in April reversed part of the steep increase delivered after the invasion of Ukraine.
In a reiteration of guidance set out this month, Nabiullina said the emergency hike was needed only for the most acute stage of the crisis triggered by international sanctions imposed over the war. The Bank of Russia lowered its benchmark to 17% from 20% at an unscheduled meeting April 8.
“As the situation in the financial market stabilizes, as inflationary pressure eases, we began to reduce the key rate,” Nabiullina told lawmakers on Thursday.
Nominated for a new five-year term by President Vladimir Putin, Nabiullina was confirmed by the parliament on Thursday, as expected. She is a veteran of multiple crises who's been in the job since 2013. The governor is now recasting policies that in recent years largely focused on inflation targeting and amassing foreign reserves.
The focus is increasingly on the economy even as annual inflation approaches 20%. The central bank, which has also been rolling back some capital controls, is next scheduled to review interest rates on April 29.
©2022 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
