The head of the Russian Central Bank, Elvira Nabiullina, said that she does not rule out raising the main interest rate during the current September meeting, to support the ruble and confront inflation.
Nabiullina said, according to Russia Today channel, that the bank must maintain a state of continuous readiness in the economy to face shocks, and ensure that there is a margin of safety necessary for the financial system.
However, at the same time, the bank president preferred to keep the interest rate at its current level of 12% annually, adding: “We rule out cutting the main interest rate in the upcoming meetings.”
She pointed out that the flow of cash to Russian banks exceeds the demand for them at the present time, continuing: “The bank is developing, in cooperation with the Ministry of Finance, a mechanism for exchanging the assets of Russian investors frozen in the West, with the assets of foreigners in Russia.”