Central Bank policy on reaching inflation target of 4% in 2017 also is policy for reaching stable econ growth - Yudayeva
MOSCOW. April 19 (Interfax) - The policy of the Central Bank of Russia on reaching target inflation of 4% in 2017 is also a policy for achieving sustainable economic growth, Central Bank First Deputy Governor Ksenia Yudayeva said at the Higher School of Economics' April International Academic Conference.
"The Central Bank's policy for reducing inflation to 4% is also a policy for achieving more sustainable economic growth," she said.
She also said that the Central Bank will organize its policy in such a way so as to reach the inflation target of 4%, and then will keep inflation at this level.
"The Central Bank is using all opportunities for reaching inflation targets in 2017 with monetary policy measures, however against this background, the most crucial thing is the reduction of inflationary expectations to a sustainably low level, increasing confidence of the public in the Central Bank regarding inflation targets and for the targets pursued in the monetary policy in general," Yudayeva said.
She also said that the conservative budget policy, which is being carried out by the Finance Ministry and the Russian government, "is extremely important for lowering inflation and for supporting macroeconomic stability."
"But now the task is not to make it through several months or years, the serious optimization of the budget is necessary. Budget spending should come into accordance with the new level of budget revenues," she said.
She said the failure to relatively quickly provide an appropriate budget policy may lead to an increase in volatility on financial and forex markets and new shocks for economic growth. "A too large deficit, on the one hand, will lead to the appreciation of the real exchange rate, the fall in competitive opportunities of Russian companies, on the other hand, to growth in the debt burden on the economy," Yudayeva said.
