Nabiullina made statements to journalists after the Bank of Russia’s decision to keep the policy rate unchanged at 16 percent.
Explaining that the interest rate cut will be made gradually, Nabiullina said, “Since we are talking about the gradual cooling of inflation rather than a rapid slowdown, we think that the interest rate cut will be made in the form of softer, successive steps.”
Pointing out that the size of the steps in question depends on inflation, Nabiullina said, “We discussed with our colleagues when the first cut in the interest rate could start. Opinions are quite diverse, but the majority think it will happen in the second half of this year.”
Nabiullina pointed out that there is no danger of a recession in the Russian economy.
Commenting on the compulsory sale of foreign currency for Russian exporting companies, Nabiullina said, “The Bank of Russia does not see compelling reasons to extend the decision on the compulsory sale of foreign currency earnings. In our opinion, the importance of this measure to stabilize the exchange rate is significantly smaller than other measures.”
