There would be several severe consequences at once: first, the fall of the ruble’s exchange rate, second, businesses would stop investing in development, Russian Central Bank Chief Elvira Nabiullina said.
MOSCOW, June 21.
/TASS/. The decline of the key rate to 0% in Russia by the example of developed
countries will result in inflation rising to double digits and the fall in the
ruble’s exchange rate, Russian Central Bank Chief Elvira Nabiullina said in an
interview with the Komsomolskaya Pravda newspaper.
"Those would
definitely be double figures. There would be several severe consequences at
once: first, the fall of the ruble’s exchange rate as people would take savings
to foreign exchange, second, businesses would stop investing in development,
since long-term predictability is very important for that," she said when
asked about the consequences of the key rate’s decline to 0%.
The board of
directors of the Bank of Russia raised the key rate for the second time in a
row - by 0.5 percentage points to 5.5% per annum at its meeting earlier this
month, noting that it will possibly go up in the future. The recovery of the
Russian and global economies faster than expected, as well as proinflationary
risks, were the reasons of such a decision, the regulator explained.
Source: ITAR-TASS
21-06-2021
