CBR must maintain tight monetary policy for several quarters to return inflation to target by end of 2024 - Nabiullina

MOSCOW. Nov 9 (Interfax) - The Central Bank of Russia (CBR) must maintain tight monetary policy for several quarters in order to return inflation to the regulator's target of close to 4% by the end of 2024, Central Bank Governor Elvira Nabiullina said at a joint meeting of the State Duma committees on financial policy, budget and taxes, and economic policy.

Nabiullina also confirmed the signal for the December meeting of the CBR board of directors on monetary policy, noting that the decision will depend on incoming data on inflation and lending dynamics amid the steps already taken by the regulator.

"In order to return inflation to the target for the end of 2024, we must maintain tight monetary policy for several quarters. The rate of growth in lending should slow down, though lending rates should remain positive next year according to our forecast, meaning that they should continue to contribute to economic development," Nabiullina said.

Nabiullina also noted that the regulator will be able to move to cutting the key rate gradually once inflation is declining steadily.

"If the situation develops according to our baseline forecast, then the key rate should drop below 10% in 2025, and should stabilize at levels that we assess as neutral in 2026. Our estimate now is 6%-7%, meaning in 2026," Nabiullina explained.