The Ministry of Economic Development has warned about the risks of hypothermia in the economy

The Ministry of Economic Development of the Russian Federation sees the risks of hypothermia in the Russian economy. This was announced on May 26 by the head of the Ministry Maxim Reshetnikov.

According to him, in recent weeks, inflation in Russia has been in the range of 3-4% in annual terms when recalculated according to weekly data.

"We expect that this will be taken into account by the Central Bank in a timely manner when making decisions, because we also see risks of economic hypothermia in the current regime," Reshetnikov said at a meeting of the State Duma Committee on Budget and Taxes.

At the same time, he called the forecast of the Ministry of Economic Development for inflation for the current year at 7.6% realistic, explaining this by the accumulated inflationary potential formed in late 2024 and early 2025.

In addition, during the meeting, Finance Minister Anton Siluanov announced that there were no plans to change the conditions of preferential mortgages in the country.

"We are waiting for lower rates in the economy and lower spending on government programs," he said, adding that the cooling of the economy "cannot continue indefinitely."

Three steps back: the market expects the key rate to decrease to only 19% by the end of 2025

When will the Central Bank start reducing it and why will it do it gradually

On April 25, the head of the Central Bank of the Russian Federation, Elvira Nabiullina, said that in order to reduce inflation in Russia, a long-term tight monetary policy is required. According to her, the regulator expects that inflation will continue to decline and fall to the target level of 4% in 2026.