Kostin called inflation in Russia in the range of 10% a beauty

Now it is often said that if measures are not taken, inflation can jump significantly, with a price increase of 40% it would be difficult, but inflation within 10% is a beauty, VTB Chairman of the Management Board Andrey Kostin told Izvestia in an interview at SPIEF 2025.

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"Inflation is now, according to Elvira Nabiullina, even better than the forecasts of the Central Bank. Therefore, I would not panic now, but would see how the economy will continue to work," Andrei Kostin emphasized.

According to him, it is too early to talk about a recession, but tight monetary policy will inevitably slow down economic growth. It is unlikely that it will be possible to reach 3% or 4%, most likely about 1-2%. A high key rate is good when applied over a short distance. Prolonged retention at a high level leads first to a smooth drawdown, then this drawdown may be more severe, the chairman of the VTB Management Board warned.

He added: it is important to closely monitor the dynamics of inflation, the state of business and the financial sector. So far, the situation cannot be called critical, although many companies are going through difficult times: most of their income is spent on debt servicing rather than development.

"In this regard, the situation is quite difficult. But let's wait and see. The central Bank has taken a fairly clear position and believes that it can handle it. Let's look at this for some more time, let's let it work. By the end of the year, we can still maintain this policy and see," Andrei Kostin said.

He recalled that the Central Bank has already given a signal — even if it is still very modest, 1 percentage point has little effect in practical work, anyway the rates are insanely high. Nevertheless, they gave a signal to the market: the regulator is ready to consider a scenario of lower rates.

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