MOSCOW, October 22. /TASS/. The Bank of Russia is viewing lockdown measures introduced in Russia as part of coronavirus control as pro-inflationary, Governor of the Bank of Russia Elvira Nabiullina said on Friday at an online conference after the Board meeting.
"I must highlight anti-epidemic restrictions introduced now on an individual basis. We believed last summer that lockdowns would lead to a heavy contraction of the demand, that is, create disinflationary risks. So it happened in the second quarter of 2020. However, the experience of subsequent pandemic waves showed that the demand is less and less exposed to constraints, while the offer declines because of shutdowns at enterprises. We believe the effect of lockdown measures is more likely to be pro-inflationary now," Nabiullina said.
Earlier today, the Bank of Russia increased the key rate by 75 basis points to 7.5% per annum.