Nabiullina: inflation will continue to decline and return to normal by the end of the year

The Bank of Russia expects a further decrease in inflation in the coming months, and its level will return to normal by the end of the year. This was announced on April 3 by the head of the Central Bank, Elvira Nabiullina.

"In the coming months, inflation will continue to decline and by the end of the year, according to our estimates, it will return to normal," she assured.

Nabiullina also stressed that an untimely reduction in the key rate with high inflation could have serious consequences.

"Everyone would like rates to decrease faster, but it is naive to believe that the key rate is such a magic wand, and if you lower the rate without paying attention to high inflation, the consequences will be sad in the form of a new rise in prices and an even more significant increase in market rates," concluded the head of the Central Bank.

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In March, the record rate of 21% was maintained, but the Bank of Russia has already cautiously noted positive developments.

Yesterday, Alexey Zabotkin, deputy chairman of the regulator, said that the Central Bank of the Russian Federation does not rule out that in case of insufficient reduction in inflation, an additional increase in the key rate may be required.

Prior to that, on March 21, the Central Bank kept the key rate at 21% per annum. The regulator said that if the dynamics of disinflation does not ensure the achievement of the goal, the Central Bank will consider raising the key rate.