The Central Bank may begin to reduce the key rate after the stabilization of inflation at a low level
MOSCOW, February 16. /TASS/. The Central Bank may begin to reduce the key rate after the stabilization of inflation in Russia at a low level. This was announced by Deputy Prime Minister Arkady Dvorkovich on the Russian economic and financial forum.
According to Deputy Prime Minister, inflation at less than 5% have the ability to more accurately build the financial model of any project, to identify the investment and to lay the global risks.
“After gaining confidence in the fact that these figures (inflation – approx. TASS) are stable, the Central Bank, I think, will begin a gradual movement of interest rates down, and this will allow to reverse the negative trend in investment, which has developed in recent years,” said Deputy Prime Minister.
The government should maintain a stable fiscal policy and eliminate the risk of a substantial increase in taxes, as well as to confirm their state program .
Dvorkovich recalled that according to the official forecasts of Russia’s GDP, after declining in the previous years could grow by 1-2%, and inflation could reach 4.7 percent.
“This gives hope for two things. The first will gradually reduce interest rates to improve credit conditions in the economy. And secondly, there will be more certainty about future macroeconomic parameters, less than the variance of all indicators that affect the investment climate affect the development of the country as a whole,” he said.