MOSCOW, May 13. /TASS/. Russia needs to carry out a "soft landing" of the economy, which will allow the Central Bank to lower the key rate, President Vladimir Putin said at a meeting with members of the Delovaya Rossiya (Business Russia) Association.
During the meeting, the head of state underscored that one of the key problems of today's Russian economy is high inflation. According to Putin, the authorities need to "suppress" inflation in such a way so as "not to freeze the economy itself."
"It is necessary to carry out such a soft, small "landing" [of the economy], which would allow us to achieve a situation in which the Central Bank would lower the key rate," the President explained.
"How do today's main instruments work? <...> Loans are subsidized. This means that the higher the key rate and, accordingly, rates of banks, the greater the budget expenditure on these subsidies. This is understandable. And then the question arises, where is this boundary and which loans to subsidize?" the President said.
In this case, according to Putin, the state should make a choice in favor of such projects that are vital for the country and the economy. "This is obvious. But, of course, this primarily includes such large companies on which the stability of the entire economy depends," he stressed.
On April 25, the Bank of Russia kept the key rate at 21% per annum for the fourth time in a row and announced a long period of tight monetary policy.