MOSCOW, July 25. /TASS/. The return of inflation to the 4% target does not mean "just a few months" at current levels, it implies a sustained anchoring at a low level of not only inflation itself, but also of inflation expectations, Russian Central Bank Governor Elvira Nabiullina said.
She noted that the return to the target does not mean "just several months of current price growth close to 4%." "It implies a sustained anchoring of inflation at a low level, not only in actual data but also in the perception of people and businesses - in what we call inflation expectations," Nabiullina told a press conference following the board meeting on the key rate.
The current monetary policy has ensured a downward turn in inflation, and now it is necessary for it to remain tight for as long as it takes to sustainably return inflation to 4% in 2026 and to anchor it close to that level, she noted.
Earlier on Friday the Bank of Russia cut its key rate by 2 percentage points to 18% per annum, saying that inflationary pressures are declining faster than projected while domestic demand growth is slowing. The Central Bank will maintain monetary conditions as tight as necessary to return inflation to the target in 2026. Changes in the fiscal policy parameters may require an adjustment in the monetary policy pursued, the regulator said.