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VTB CEO Andrey Kostin explains idea of advisory body on inflation issues
The speaker is confident. Monetary measures are not the only way to prevent a general increase in prices for goods and services.
Monetary methods of fighting inflation in the form of increasing interest rates are essentially non-monetary means. Closer interaction between the government and the Central Bank of Russia can increase the effectiveness of the fight against inflation. increase This was stated by VTB Chairman and Chairman of the Board of Directors Andrey Kostin at the FINOPOLIS 2024 financial technology forum.
- The traditional mechanism for regulating the money supply, that is, the monetary method of preventing inflation, is increasing interest rates. That is why central banks follow it. But there are also non-monetary factors. The expert explained on the air of the Russia 24 TV channel that close cooperation between the government and the central bank is necessary, since in addition to interest rates [inflation], they can be influenced by such factors as tariffs of natural monopolies, wage increases, budget expenditures, etc. channel.
He also noted that today, due to many non-monetary factors, the reduction in inflation is not happening as quickly as desired.
- But overall inflation today does not exceed 8-9%. Of course, high interest rates are harmful to the economy, but this does not look like a tragedy. And we hope that next year they will begin to decline," the speaker added.
He predicted that the central bank would raise interest rates to 21% this year.
- And although it is expected that a fairly tight monetary policy will probably be implemented in the first half of next year, it is expected that interest rates, like inflation itself, will begin to gradually decline from the second half of the year. According to our forecasts, next year it may amount to about 6%," says the chairman and chairman of the board of directors of PAO VTB.