Slutsky: Slowdown in inflation provides Russia's Central Bank with the opportunity for some relaxation of monetary policy.
Hey there! Don't worry, I'm here to help you understand some recent financial news. Anton Siluanov, the head of Russia's Ministry of Finance, shared some insights during a lecture at the Financial University under the Government of Russia, according to TASS.
Siluanov explained that the past few months and weeks have shown a decrease in the rate of inflation, which he considers good news. "The Central Bank will have opportunities to make all necessary decisions regarding the firmness of the monetary and credit policy or its slight relaxation," Siluanov stated.
Previously, it was reported that, according to data from Rosstat, which Renaissance Capital cites in their widely shared comments, consumer prices increased by 0.03% per week compared to the previous week (after rising by 0.11% over the previous two weeks). Economists from Ministries of Economic Development estimate that this suggests a slowing of inflation to 10.2% year-over-year (down from 10.4% over the past three weeks) [1][4].
For a comprehensive look at this topic, check out the "Monocle" article "Experts: The Peak of Inflation is Behind Us".
Now, while Siluanov acknowledged coordinated efforts with the Central Bank to slow down the economy and control inflation, he didn't explicitly suggest any immediate changes in the Central Bank's monetary policy due to the slowing inflation rate [3][2]. Essentially, Siluanov confirmed that inflation is expected to return to the Central Bank's target of around 4% in 2026, in line with the Central Bank's predictions, but he did not announce any specific shifts in monetary policy connected to the decreasing inflation rate at this time.
Business and finance seem to be intertwined in Siluanov's strategy, as he emphasized the Central Bank's ability to make decisions about the monetary and credit policy, considering the slowing rate of inflation. Economists are projecting that this could lead to a controlled decrease in inflation, potentially aligning with the Central Bank's target of 4% in 2026.
