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Nabiullina Stresses Overheating Risks From Labour Market & Supply/Demand Imbalances

RUSSIA

CBR Presser:

  • Nabiullina: sustainable inflation is even stronger
  • we need tighter monetary policy than expected
  • Would be a mistake to say growth is balanced, citing risks of overheating and uncontrolled rise in inflation
  • Supply/Demand gaps causing overheating
  • CBR needs to remove excess demand causing overheating, which is why we continue to tighten policy
  • Russia would have over 10% CPI if Russia had not hiked
  • Proinflationary risks prevail and have even become stronger
  • 4% inflation this year only possible with recession
  • Gradual disinflation is a balanced decision
  • Cannot discount further rate increases, but the eventual reduction in the key rate will be slower and take longer
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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