MOSCOW, March 20. /TASS/. The Bank of Russia expects to put an end to the high inflation story this year thanks to balanced decisions on the key rate, said Bank of Russia Governor Elvira Nabiullina at a press conference following the regulator's board meeting.
She also noted that all licensed banks should be included in the list of websites accessible in Russia during internet restrictions.
TASS has compiled the Central Bank Governor's key statements.
Key rate
External conditions and monetary policy parameters require the Central Bank to take a "cautious and balanced approach to key rate decisions."
The exchange rate "was not a significant factor" in today's rate decision.
The Central Bank "may need time" to assess the economic situation. The rate cut "will not be automatic."
In addition to a 50-basis point cut, the regulator considered maintaining the rate and cutting it by 100 basis points.
"The external conditions factor is indeed important. It increases uncertainty. If this factor were not present, we would probably be more actively discussing a one percentage point rate cut today," Nabiullina said.
The further path of the key rate will be adjusted in April, if necessary.
"We have a key meeting in April, and we will update the forecast [for the average key rate for 2026]. And, accordingly, we will adjust the path of the key rate, if necessary," Nabiullina said.
Inflation
The Bank of Russia believes that current key rate decisions will make it possible ‘to end the high inflation story of the past five years" as early as this year.
Stabilizing inflation at the 4% target will be possible after this level is maintained for at least several quarters.
"When will it be possible to say that we have reached a path of sustainable, balanced growth? When our inflation is stable at around 4%. We haven't just touched 4%, but we've seen that we've been entrenched at 4% for some time now. This could last for several quarters, at least, and this effect is specifically for the stable components of inflation," the regulator’s Chief said.
Mortgages
The Central Bank doesn't see large sales of homes purchased with preferential mortgages, but this effect "may be present in the future."
Market mortgages haven't died out. Tens of thousands of such loans are issued monthly.
National economy
The labor shortage in the national economy is "gradually decreasing," and "companies' hiring and plans for inflation-adjustment of wages are becoming more moderate."
The Russian economy's production capacity "continues to expand."
The final impact on the Russian economy from the situation in the Middle East "will depend on the duration and scale" of the conflict.
Economic activity in Russia is below the Central Bank's forecast for the first quarter of 2026. "However, this was influenced by last year's high base, a well-known seasonal factor—we had several fewer working days, and weather conditions, which affect construction dynamics: the cold winter slowed construction volumes," the Bank of Russia’s Chief explained.
The Bank of Russia currently assesses the risk scenario for the national economy as low.
"As for the likelihood of the risk scenario, in our view, it still has some probability. If we evaluate it in probabilities - and we try not to evaluate probabilities - for now, it is low probability."
Whitelists
The Central Bank believes that all licensed banks should be included in the list of websites accessible in Russia during internet restrictions.
"In our opinion, all licensed banks should be included. This is our position, which we are discussing with regulators," Nabiullina said.
Russians savings
Russians' propensity to save remains high by historical standards, "although it is declining slightly."
"This decline is natural with the easing of monetary policy, and it is happening very gradually," Nabiullina explained.
Ruble exchange rate
It is early to talk about the formation of a stable trend toward ruble weakening, as it fluctuates within the 2025 range.
"It is premature to talk about a pronounced trend," Nabiullina noted.
The ruble's weakening is "related to a combination of two factors": low oil prices in January-February and the suspension of the fiscal rule, she explained.
The current weakening of the ruble is within the expectations of Russian businesses.
"For now, in our view, the weakening that has occurred is within the expectations of businesses, so there is no point in considering any additional inflationary effect this time," she said.
Market rates
The downward trend in market rates is evident.
"This is a consequence of declining inflation," Nabiullina said.
Monetary policy
When making monetary policy decisions, the Central Bank prioritizes the overall budget structure, not individual parameters.