Monetary policy measures have already started to slow lending, inflation could fall but economic growth could stall - Russian PM

MOSCOW. Feb 7 (Interfax) - The monetary policy measures that have been taken have already slowed down lending, putting the conditions in place to lower inflation, but this could stall economic growth, Russian Prime Minister Mikhail Mishustin said at a working meeting with President Vladimir Putin.

"All measures now taken in monetary policy have already begun to slow down lending to the economy. You also know this, we have reported on it to you. Annual rates [of lending growth] have been declining for the sixth straight month," Mishustin said.

He said both corporate and retail lending had slowed.

"This is paving the way for prices to come down, but it will inevitably put the brakes on the economy, so our task here, above all, together with the Bank of Russia, is to move to a highly responsible fiscal and macroeconomic policy," Mishustin said.

He said GDP growth might not be as high as the 4.1% seen in 2024. "But it is essential to stop inflation and do all we can, on no uncertain terms, to ensure long-term economic growth based on a stable macroeconomic situation," he said.

Putin said this year's task was to lower inflation and enter a balanced growth trajectory.

"Our [inflation] for the year [2024] was 9.5%, and as of February 3 it was already 9.9% in annual terms [according to the Russian Economic Development Ministry's methodology]. And this is a challenge for us," the president said.

"We must do all that is necessary to ensure we have balanced growth," he said, noting the importance of maintaining the economic growth trajectory.