MOSCOW, April 8. /TASS/. The Bank of Russia is "very concerned" that inflation has exceeded the target for four consecutive years, but acknowledges that these years have been marked by numerous economic shocks, Governor of the Bank of Russia Elvira Nabiullina said.
"We are very concerned that for four years now, inflation has been above our target, because inflation acceleration directly impacts real incomes," she said. "2020 was the year of COVID-19, and these were shock circumstances, while 2022 saw a sharp shift in external conditions and the restructuring of our economy. Therefore, during these periods, deviations from the target inflation rate are somewhat acceptable. The main thing is that inflation does not spiral out of control and does not reach double-digit figures," Nabiullina explained.
Nabiullina also reiterated the importance of maintaining low inflation for the overall economy.
"We had a period from 2017 to 2019 when inflation remained around 4%. During that time, mortgage lending began to develop without costly budgetary support. Low inflation results in low interest rates for ‘long-term’ loans, which are so important for the economy," she emphasized.
