VTB head compares Nabiullina to former British Prime Minister Margaret Thatcher

VTB CEO Andrei Kostin said that he considers Bank of Russia Governor Elvira Nabiullina brave and compared her to former British Prime Minister Margaret Thatcher. He expressed his opinion in an interview with Reuters on December 2.

"I support the Central Bank, I believe that Elvira Sakhipzadovna [Nabiullina] is a brave woman, she has her own line, we should let her decide. I remember when I worked in London, Margaret Thatcher - the same 'iron lady' as Nabiullina - actively fought inflation, believing that it is the main thing in the economy," TASS quoted him as saying.

According to Kostin's assessment, if inflation starts to fall, the Central Bank will have to sharply reduce the key rate in 2025. At the same time, he suggested that other tools may be needed to reduce inflation, as not all factors affecting it depend on the regulator.

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Earlier, November 28, Kirill Tremasov, Advisor to the Chairman of the Bank of Russia, said that the regulator will consider the issue of raising the key rate at a meeting on December 20. At the same time, Deputy President - Chairman of the Board of VTB Dmitry Pianov said that the bank's analysts predict an increase in the key rate to 23%.

On October 25, the Board of Directors of the Central Bank of Russia raised the key rate to 21%. Then on November 19, Nabiullina said that if Russia does not face additional economic shocks, in 2025 the regulator will be able to start reducing the key rate.