MOSCOW, December 9. /TASS/. Further rapid easing of monetary and financial conditions could create risks to the sustained slowdown of price growth toward the 4% level in 2026, according to a report prepared by the Bank of Russia’s Research and Forecasting Department.
"Further rapid easing of monetary and financial conditions — which could spur an acceleration in credit growth and monetary aggregates — may create risks for the stable deceleration of price growth to 4% next year. This must be taken into account when determining the trajectory of the key rate in the months ahead," the report said.
According to the regulator’s analysts, rising inflation expectations also indicate the need to maintain tight monetary conditions for an extended period.
"Given the time lags in the monetary-policy transmission mechanism, the restraining influence on price dynamics should continue in the coming quarters. However, to return inflation to 4% and secure it at that level, the trajectory of the key rate (the tightness of monetary policy) must remain elevated," the experts noted.
The conclusions and recommendations contained in the report may not align with the Bank of Russia’s official position.