M2 money supply in Russia will expand 12% in 2009
MOSCOW. Dec 23 (Interfax) - The M2 money supply in Russia will grow 12% in 2009, Deputy Prime Minister Alexei Kudrin, who is also the country's finance minister, said at a Wednesday press conference.
"This 12% is a usual and normal figure for all countries. This is a civilized level for M2 growth. For our country I think it is normal," he said.
"If this figure will increase next year to 30%-40%, inflation could go up. If it stays at 20%-25%, we will have inflation set at 7.5% for real. The increase of money in the economy is the main and primary factor for inflation," Kudrin stressed.
According to the Central Bank of Russia, the M2 money supply for 11 months increased by 2.8%, in 2008 - 1.78% after growth of 38.5% in 2005, 48.8% in 2006 and 47.5% in 2007.