“If they are insufficient (the speed and sustainability of inflation decline), we may take an additional step to raise the rate, although the probability of this has decreased,” Nabiullina said, hinting that the Central Bank may move to a softer policy if current trends in the economy persist.
Nabiullina emphasized that the Central Bank's goal remains the return of inflation to the target level of 4% by 2026, and that the decline in the rate of price growth in Russia is a direct consequence of the regulator's tight monetary policy.
The head of the Central Bank also noted that the Russian economy is moving along the trajectory of “soft landing”, which is manifested in a moderate slowdown in domestic demand and a gradual reduction of tension in the labor market.
At the March 21 meeting, the Central Bank made the expected decision to keep the key rate at 21% per annum.
This statement was made against the background of news about the fall in wholesale egg prices in Russia and producers' concerns about the decline in profitability, as well as the discussion of conditions for the possible return of foreign companies to the Russian market.