The Central Bank will not be able to cope with inflation by changing the key rate alone.
The Central Bank of the Russian Federation, given the limited range of available instruments, will not be able to combat inflation on its own.
Former Finance Minister and economist Mikhail Zadornov shared this opinion in an interview with RIA Novosti .
He said that the Central Bank cannot cope with inflation in Russia with just one rate.
He also recalled that under the sanctions, the range of instruments available to the Central Bank is limited.
Moreover, a number of sectors of the economy are outside the zone of influence of the key rate.
Therefore, you won't be able to do anything with just one bet.
Zadornov explained that the Central Bank's only remaining instruments for managing inflation are the key rate and influence on banks through restrictions on lending.
The regulator can partially influence the economy in these conditions, and without the support of the Ministry of Finance, success in the fight against inflation cannot be achieved.
Author: Elena Gutyro
