The head of the Central Bank, Elvira Nabiullina, said that providing cheap loans will not help support the Russian economy. It is reported by TASS.

“The shortage of labor force is becoming a more serious constraint for increasing output. Unemployment today is lower than ever, and it will be difficult for companies to recruit new workers as they expand production, ”she said at a press conference following a meeting of the regulator’s board of directors.

According to Nabiullina, in such conditions, the distribution of cheap loans will not be able to quickly expand output, but will continue to "spur demand."

Earlier it was reported that the Central Bank raised the key rate by 1 percentage point to 9.5% per annum. This is the eighth increase in the key rate in a row. The last one was on December 17, 2021, when the Central Bank also increased the rate by 1 p.p. up to 8.5% per annum. The Bank of Russia explained its decision by the fact that inflation is growing above forecasts, while inflation expectations of the population are not decreasing yet.

bbabo.Net