Liberal maetry Nabyullina

"Inflation is not a source of development, and it fools rulers" Ludwig Erhard
Elvira: the Central Bank will not reduce inflation to the detriment of economic growth

The Bank of Russia will decide to reduce inflation to the target level "on the balance of inflation risks and risks of economic growth," said Chairman of the Central Bank

Ian Shabalin  

Vedomosti.ru

12/09/2014

Speaking about the plans of the Bank of Russia to reduce inflation to the target level, the chairman of the Central Bank Nabiullina said that he was going to do it gradually, so as not to create undue risks to economic growth. "Definition of medium-term objective at a relatively low level by Russian standards, does not mean that we will strive to reduce inflation at any price", - she said at a press conference on Friday.

Commenting on attempts to stimulate economic growth by lowering key interest rates, Elvira stressed that they carry the risk of formation of bubbles in some markets. "In this case, the threat of high inflation while maintaining economic growth at a low level will be more real.

Moreover, there is a possibility of formation of bubbles in some markets where lower rates would lead to an unjustified increase in the debt burden on certain segments of the population and business, "- she said (quoted by" Interfax ").

According to her, the impact of trade restrictions on inflation will be up to the middle of 2015 of 1.5 percentage points. Elvira explained that before the end of this year, the contribution of foreign trade restrictions in inflation of 0.8 p. P., Next year - 0.7 p. P. In August, according to the Central Bank, the impact of trade restrictions was 0.2 p. P .

Chairman of the Central Bank noted that the pace of credit growth in Russia in 2015 will amount to about 11%. According to forecasts of the Bank of Russia, this year the financial institutions will increase its loan portfolio by 15-17%. Elvira added that demand for refinancing with the Central Bank increases. "We are satisfied him, and, according to our estimates, by the end of this year, an increase of the gross loan amount to an additional 1 trillion rubles. Reach 6.2 trillion rubles. For 2015 we expect to increase to $ 7 trillion, "- she said (quoted by" RIA Novosti ").

Speaking on the topic of foreign exchange position of banks and companies came under the EU sanctions, Elvira told me that, according to the Central Bank, it is quite balanced and allows them to solve problems. At the same time Nabiullina noted that the Central Bank does not intend to extend foreign currency loans to banks. "There is a certain tension in the market due to the closure of foreign markets. We have seen this situation, in our opinion, there is no need to enter any additional tools, "- she added.

According to her, if necessary, they can enter the foreign exchange market through a stock exchange. In addition, they may return to the Russian market and the Russian banking sector lending to escalate. "There is another effect when borrowers-enterprise return on our market and raise the demand for loans in our banking system. The Russian banking sector can increase lending to Russian companies, which he does. As it was in the first half of the year, when many companies back from the external to the internal market ", - says the chairman of the Bank of Russia (quoted by ITAR-TASS).

Reorientation of the Asian markets Elvira called "right, healthy process." "This is a natural reaction of our corporate borrowers. But attempts to diversify its presence in the capital markets took place in previous years, it is not necessarily due to political factors. But, of course, this process is not a one. I think that our company will be there to find investors, it is absolutely normal. We hope that this process will naturally evolve and meet the needs of our corporate borrowers, "- she concluded, pointing out that the Asian markets are formed sufficient sources of capital (quoted by" Prime ").