MOSCOW, October 31. /TASS/. Without the increase in the key interest rate there would have been an "explosive" growth in lending and an even greater overheating of demand, Governor of the Bank of Russia Elvira Nabiullina said.

"Without increasing the policy rate to 16%, we would have already seen a much more ‘explosive’ growth in both corporate and retail lending and an even greater overheating of demand, with all the consequences for inflation. Inflation would be much higher, I assure you," she said.

Speaking about the effectiveness of the key rate, Nabiullina noted that it is as effective as before, and the mechanics of its impact on inflation have not changed.