8 Nov 2022 12:11

Current key rate of 7.5% p.a. adequately reflects balance of inflation risks - Nabiullina

MOSCOW. Nov 8 (Interfax) - The current level of the key rate at 7.5% per annum adequately reflects the balance of pro-inflationary and disinflationary risks, Central Bank Governor Elvira Nabiullina said on Tuesday during at a joint meeting of State Duma committees.

The rise in geopolitical tensions over the past month-and-a-half has increased the public's anxiety, Nabiullina noted, and this could only but affect the financial behavior of citizens. There has until recently been an outflow of citizens' funds from the banking system. As anxiety subsides, citizens are beginning to return funds to banks.

"Meantime, as in previous crisis periods, citizens are behaving cautiously and prefer to save. This has a disinflationary effect. However, pro-inflationary risks prevail in the medium term, including owing to the effects associated with the partial mobilization," Nabiullina said at the joint meeting.

"We believe that the current level of the key rate at 7.5% p.a. adequately reflects the current balance of inflation risks, both pro-inflationary and disinflationary," Nabiullina said.