The Sovfed assessed the actions of the Central Bank of Russia to cool the money supply

The Central Bank of the Russian Federation (CBR) is quite right to cool the money supply through its main instrument - the key rate, Deputy Chairman of the Council of the Russian Federation Nikolai Zhuravlev told Izvestia on December 4.

However, according to him, it is necessary to think about other instruments of regulation. For example, the regulator has the ability to impose quantitative restrictions on the issuance of loans. This tool is used to a lesser extent.

"The Central Bank is currently partially using it for consumer lending. But it is time to introduce this measure for other types of loans - mortgages, corporate lending. We believe this is the right thing to do," Zhuravlev emphasized.

According to him, the regulator could thus cool down lending in the segment that the Central Bank considers more pro-inflationary, as well as stimulate lending that is important for the country.

The government also has a tool for this - subsidies, said the deputy chairman of the Council of Federation. In his opinion, it is possible to introduce it point by point, exactly in those areas that now especially need to develop the country and that do not contribute significantly to inflation.

"What [Central Bank head] Elvira Nabiullina is right about is that inflation is the biggest enemy of the economy. People suffer from it first of all," Zhuravlev said.

Earlier in the day, Nabiullina said at the VTB forum "Russia Calling!" that macroeconomic stability is the foundation without which further development is impossible. The head of the Central Bank added that if inflation remains at a high level and will be taken into account in the business models of companies for a long time, the economy may fall into a vicious circle: investors will overestimate the necessary level of the interest rate.