MOSCOW, April 26. /TASS/. The tough monetary policy pursued by the Bank of Russia does not impede the development of the national economy or stifle it, head of the regulator, Elvira Nabiullina, told a press conference following a meeting of the board of directors of the Bank of the Russia on the key rate.
"Contrary to popular belief, tight monetary policy by itself does not stifle economic growth. In conditions when the economy is in a state of overheating, additional growth in demand does not lead to a significant increase in output, but results in a much more significant increase in inflation," she said.
If the level of the key rate is commensurate with other circumstances in the economy, then tight monetary policy has a much stronger effect on slowing inflation than on GDP dynamics, Nabiullina noted.
"We see it based on the data from the first quarter of this year. All indicators show that growth remains significant, while the growth rate has decreased significantly compared to last year," the head of the Central Bank said.
On Friday, the Board of Directors of the Bank of Russia once again decided to maintain the key rate at 16% per annum and announced a longer period of maintaining tight monetary conditions in the economy.