Putin advises the head of the bank v. Nabiullina for the third term to ensure economic stability

    Home / Business Economy / Putin advises the head of the bank v. Nabiullina for the third term to ensure economic stability

Putin advises the head of the bank v. Nabiullina for the third term to ensure economic stability

0

Elvira Nabiullina, Governor of the Russian Central Bank, speaks during an interview in Moscow, Russia, June 27, 2019. REUTERS / Evgenia Novozhenina

Register now for FREE unlimited access to Reuters.com

March 18 (Reuters) – Russian President Vladimir Putin has proposed appointing central bank governor Elvira Nabiullina for a third term in an effort to ensure macroeconomic stability, spokesman Dmitry Peskov said.

A surprise date in 2013, Nabiullina, 58, an economist and former Putin adviser, is the first woman to preside over one of Russia’s most respected institutions. to know more

His current term expires in June and on Friday Putin asked the lower house of parliament, or Duma, to consider his proposal to reconfirm on March 21.

Register now for FREE unlimited access to Reuters.com

“Now, when the central bank is faced with the growing responsibility of maintaining macroeconomic stability, the president speaks regularly with Nabiullina,” Peskov told reporters in a daily phone call.

Nabiullina is a staunch inflation fighter, resisting calls from powerful industrialists and the Ministry of Economy for interest rate cuts to boost growth. to know more

The bank held its benchmark interest rate at 20% on Friday after a sharp emergency hike in late February. Nabiullina is expected to issue a monetary policy statement at 1400 GMT, no questions asked. to know more

“Reconfirmation removes unnecessary questions from different ‘influence groups’,” said Dmitry Polevoy, investment director of Locko Invest.

“Obviously, in the current context, the economy would need a stimulating monetary policy that will further affect the trajectory of the key rate. But it seems that there will be no radical changes in the approach given Nabiullina’s reconfirmation.”

The central bank raised the key rate from 9.5% in February. 28 when the ruble plunged to all-time lows and people rushed to withdraw money from banks following an unprecedented barrage of Western sanctions against Russia for what it calls a “special military operation” in Ukraine.

“The Russian economy is entering a phase of large-scale structural transformation, which will be accompanied by a temporary but inevitable period of rising inflation,” the central bank said Friday.

An independent survey of analysts requested by the central bank this month predicts inflation of 20% and an economic contraction of 8% this year, while forecasting that the key interest rate would average 18.9%.

The central bank did not provide inflation and economic growth forecasts on Friday, saying only that gross domestic product would decline in the coming quarters and that it expects annual inflation to return to its 4% target in 2024.

Before the broader military conflict between Russia and Ukraine erupted in late February, the central bank had revised its year-end inflation forecast to 5.0-6.0%, giving up previous hopes that it would drop to 4. 0-4.5%.

At the time, inflation was expected to hit the 4% target by mid-2023. Read more

Register now for FREE unlimited access to Reuters.com

Reuters reporting; editing by Tomasz Janowski, Kirsten Donovan

Our Standards: Thomson Reuters Trust Principles.

.

Leave a Reply

Your email address will not be published. Required fields are marked *