MOSCOW, November 19. /TASS/. Russia’s budget expenditures related to the key rate will have to be increased, though the rate’s growth also influences its revenue side, Central Bank Governor Elvira Nabiullina said.
"We closely interact with the government, through the mutual influence of the monetary policy and budget among other things. Clearly, we have to form both monetary policy and budget amid uncertainty factors as they are sometimes called, with many factors changing later. We consider the data that we have when both the budget and monetary policy are formed. The key rate’s change is part of the economic policy," she said at a plenary session in the State Duma (lower house of the parliament). "It may be sometimes higher, sometimes lower, but those changes and deviations should not be considered as a multi-faceted position of financial authorities as all consequences not only of the key rate, but also of inflation should be taken into account. Indeed, we see that budget expenditures related to the key rate hike will have to be increased," Nabiullina explained.
Those include debt servicing, financing of reimbursement programs with fixed rates, she added.