succession of drone attacks<\/a> by Ukraine on the country\u2019s oil refineries. However, it expects the current price spike to pass.<\/p>\nBefore Friday\u2019s meeting, some observers expected the CBR to cut by two full points, but Nabiullina said that hadn\u2019t even been considered. She said the only proposals presented were for a one-point cut or no change.<\/p>\n
The decision prompted grumblings from the Ministry of Economic Development, whose head, Maxim Reshetnikov, warned at the start of the week that the economy was \u201ccooling faster than expected\u201d due to the CBR\u2019s tight monetary policy.<\/p>\n
\u201cCurrent inflation dynamics leave potential for continued easing of monetary policy,\u201d Lev Denisov, the ministry\u2019s head of forecasting, said in a statement. \u201cThis is extremely important for [the economy] to reach a trajectory of sustainable growth and to achieve the goals set by the president.\u201d<\/p>\n
Nabiullina noted during her press conference that, while the headline inflation numbers have come down well off last year\u2019s peak, there are still plenty of signs that the economy is close to overheating. Corporate borrowing immediately increased after the CBR\u2019s first interest rate cut two months ago, consumer credit followed suit in August and wages are still rising faster than productivity throughout the economy, she said.<\/p>\n
The CBR targets an inflation rate of around 4 percent. Official data showed it slowing to 8.1 percent in August from 8.8 percent in July. However, many analysts believe the actual rate of inflation to be significantly higher, owing to the difficulty of compiling such statistics in a country that has undergone substantial structural changes since the start of the Ukraine war.<\/p>\n","protected":false},"excerpt":{"rendered":"\u201cAt our meeting in October, a lot will depend on the parameters of fiscal policy that will be…\n","protected":false},"author":2,"featured_media":420588,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[1194,51,2814,1700,31078,1195,476,478,17436,2661,332,16,657,15,335],"class_list":{"0":"post-420587","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-budget","9":"tag-business","10":"tag-data","11":"tag-economy","12":"tag-elvira-nabiullina","13":"tag-growth","14":"tag-inflation","15":"tag-interest-rates","16":"tag-monetary-policy","17":"tag-oil","18":"tag-russia","19":"tag-uk","20":"tag-ukraine","21":"tag-united-kingdom","22":"tag-war-in-ukraine"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115195965871190617","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/420587","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=420587"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/420587\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/420588"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=420587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=420587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=420587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}