The Central Bank explained the economic growth factors using a country example

On July 9, the Central Bank of Russia, using a country example, explained that the large-scale saturation of the economy with "cheap money" not only does not ensure sustainable growth, but also destroys it.

"Let's take a summer cottage example. Imagine that you have planted roses. Wanting to get as many flowers as possible and as soon as possible, you start continuously watering and fertilizing them ("cheap loans"). Unfortunately, such haste can lead to the opposite result: instead of abundant flowering, you risk losing plants," the regulator's Telegram channel says.

The Central Bank explained that the main growth factors The economic potential is represented by the expansion of the labor force and an increase in labor productivity. If some Asian countries, such as India, demonstrate high GDP growth rates due to the attraction of new labor resources, then in the current Russian shortage of personnel, the key driver is precisely increased efficiency.

The inflationary challenge: what will happen to rising prices and interest rates

The Bank of Russia may pause the monetary policy easing cycle.

Alexey Zabotkin, Deputy Chairman of the Bank of Russia, said on July 3: the opinion that a weak exchange rate of the national currency is beneficial for the state budget is a deeply erroneous myth and illusion. He explained that in the short term, a certain amount of oil and gas revenues actually generates more rubles when the exchange rate decreases. However, under such conditions, inflation inevitably accelerates in the economy.