Central Bank calls rational behavior a way to help reduce inflation

The rationality of its residents and business representatives can help to reduce inflation in Russia, Director of the Monetary Policy Department of the Central Bank Andrei Gangan said on November 20.

"To reduce inflation, probably, both business and people can do one thing - behave rationally. That is, to act in their own interests. In principle, we are already seeing this now," he said in an interview with Delovoy Peterburg.

According to Gangan, now the growth rate of consumer lending is slowing down. He expressed the opinion that people realize the possibility to postpone any purchase and not to take a loan for it because of high interest rates.

The regulator's spokesman pointed to a 15% increase in funds in individual accounts over the last nine months, which is double last year's figure. This trend demonstrates a rational, saving behavior, he said. Gangan also noted that in two years, businesses have learned to adapt quickly to changes.

Earlier, on November 15, the press service of the Bank of Russia said that the price level decreases during seasonal and regular sales. For this reason, they do not affect inflation, being a permanent factor.

Before that, on October 25, the Central Bank raised the key rate to 21%. The regulator cited inflation above the July forecast as one of the reasons for the decision. It is expected to slow down to 4.5-5% in 2025 and 4% in 2026. Deputy Prime Minister Alexander Novak told Izvestia on November 8 that the government and the Bank of Russia are taking measures to reduce the rate.