Bank of Russia Governor Nabiullina on Key Rate Options and Fuel Market
En resumen
- Bank of Russia Governor Elvira Nabiullina stated the regulator considered both reducing and maintaining the key rate, with isolated proposals to raise it, following a board meeting.
- She noted the analysis of the fuel situation and government measures to stabilize the market.
Resumen generado por IA
Por qué importa
The Bank of Russia's board meeting included detailed discussions on monetary policy options, specifically regarding the key rate, amidst concerns about the fuel situation and inflation.
MOSCOW, July 24. /TASS/. The Bank of Russia considered in detail both reducing and maintaining the key rate, the regulator’s Governor Elvira Nabiullina said, adding that there were also isolated proposals to raise it.
"We gave substantive consideration to two options: keeping the rate unchanged and cutting it by 25 basis points; there were also isolated proposals to raise the rate. <…> We did indeed analyze the fuel situation, which is primarily a matter of what is known as supply shocks. Monetary policy responds to supply shocks if they have pronounced second-round effects and feed into persistent inflation, and, of course, depends on the duration of these shocks," she told a press conference following the Central Bank’s board meeting.
That said, the Central Bank sees the government taking measures to stabilize the situation in the fuel market, the regulator’s chief added.
Preguntas abiertas
- What will be the final key rate decision?
- How will government measures stabilize the fuel market?
- What are the specific second-round effects of supply shocks?
