17 Apr 2024 09:30

Current monetary conditions sufficient to slow inflation, but not quickly - CBR analysts

MOSCOW. April 17 (Interfax) - Current monetary conditions in Russia are sufficient to gradually slow inflation, but not ensure that this process happens quickly, Central Bank of Russia (CBR) analysts said.

"The dynamic and factors of the growth of consumer prices indirectly point to moderate tightness of monetary conditions, despite high nominal interest rates. Such tightness is sufficient for the gradual slowdown of price growth, but will not ensure its quick slowdown," the CBR's research and forecasting department said in a bulletin on current trends.

The adaptation of consumers and producers to high interest rates amid continued budget stimulus could give new momentum to the growth of demand in the economy, which could outstrip the ability to expand supply in the short term, the department said. In these circumstances, there could be pronounced inertia of the current faster price growth.

The reduction of inflationary pressure is gradual and will require maintaining tight monetary conditions for an extended period, the department said.