Central Bank Governor Elvira Nabiullina addressed the key interest rate, fuel market stability, and the insurance sector following a board meeting on monetary policy.

Russian Central Bank Governor Elvira Nabiullina stated that the regulator cannot rule out a future interest rate hike if economic circumstances change. Speaking after a board meeting on monetary policy, she noted that the Bank of Russia is monitoring supply shocks and fuel market conditions. While the bank is not currently planning support measures for the insurance sector following attacks on marketplace warehouses, it maintains that the industry has a sufficient safety margin.

Monetary Policy and Inflation

The Bank of Russia views the current acceleration in price growth as temporary and believes its existing monetary policy is sufficient to slow inflation. Nabiullina emphasized that the bank does not need to respond to every supply shock with policy changes, though it is prepared to act if these shocks lead to persistent inflation. The regulator is not considering raising its inflation target, which Nabiullina described as harmful to the economy.

Economic Outlook and Market Stability

The Central Bank projects that Russian companies will restore production capacities by the end of this year. Regarding the financial sector, Nabiullina stated that the banking industry has successfully adjusted to sanctions and possesses a substantial capital buffer. While the stock market is experiencing a difficult period, the bank sees no immediate threat to overall financial stability.