Putin defends Central Bank’s tight policy

If the Central Bank were not pursuing a tight monetary policy, the situation in Russia could be like in Turkey, President Vladimir Putin explained, quoted by Kommersant.

Sergey Guneev | RIAN
Sergey Guneev | RIAN

As Invest Foresight wrote earlier, the Central Bank of Turkey continues to lower its key rate despite the surging inflation and devaluation. President Recep Tayyip Erdogan believes that high Central Bank rates are contrary to the principles of Islam and can harm the national economy. As a result, the Turkish lira has lost about half its value this year.

Vladimir Putin said both the Government and the Central Bank deserved “an acceptable score” for their efforts in 2021. At the end of this year, the inflation rate in Russia is expected at 8%, which is too high, and we certainly need to attain the target rate of 4%, the President noted.

“It looks like the government does not plan to deviate from its inflation targeting policy. This may be for the better,” comments economist Sergei Khestanov, Associate Professor at RANEPA.

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