“When you think hard, it comes true”: Siluanov on expectations of an increase in the key interest rate

“Why is everyone waiting for a rate hike? There is no need to create additional expectations. You know, when you think about it a lot, it becomes reality. That is why it is necessary to think the other way around,” said the minister.

At the same time, he admitted that in Russia “it is necessary to solve the problem of inflation”, which “affects mainly people with low incomes” and companies whose current expenses “are also linked to inflation: salaries, raw materials, supplies “. .”

The Board of Directors of the Bank of Russia, at a meeting on October 25, raised the key interest rate to a record 21% per year. This was the third rate increase in 2024. Central Bank President Elvira Nabiullina did not rule out further tightening of monetary policy and, when asked about the limit for raising the interest rate, responded that “there is no such limit.” period, so it makes no sense to talk about its size.”

Speaking in the State Duma on November 19, Nabiullina stated that the main conditions for reducing the key rate would be a slowdown in inflation and the absence of new economic shocks. He noted that the key rate effectively counteracts inflation. “If we had left the key interest rate at last year’s level, then inflation would now have reached 20-30%, and possibly higher,” the head of the regulator emphasized.