Russia (bbabo.net), - The conditional distribution of cheap loans in the current conditions is not able to support the Russian economy. This was stated at a press conference by the head of the Bank of Russia Elvira Nabiullina.

"Unemployment today is lower than ever, and it will be difficult for companies to recruit new workers while expanding production. Under these conditions, the distribution of cheap loans will not be able to quickly expand output, but will continue to spur demand," the head of the Central Bank believes.

According to Nabiullina, excess demand must be removed in order to protect the real incomes and savings of citizens from depreciation and create conditions for a healthier and more sustainable economic growth. "Excessive demand is an increase in demand, which means not an increase in consumption, but an increase in prices. That is why we continue the cycle of raising the key rate," the head of the Bank of Russia stressed.

Earlier on Friday, the Bank of Russia raised the key rate for the eighth time in a row. It is increased by one percentage point, from 8.5% to 9.5% per annum against the backdrop of high inflation. The Bank of Russia does not rule out a further increase in the key rate, including with a step of one percentage point.

bbabo.Net