Nabiullina explained why a Central Bank does not determine GDP growth

© RIA Novosti / Evgeny to Betemporary in fotoreceptor the Central Bank of Russia Elvira Nabiullina. Archival photoNabiullina explained why a Central Bank does not determine GDP growth© RIA Novosti / Evgeny to Betemporary the image Bank

Monetary policy the Bank of Russia exerts a determining influence on economic growth in the country, however, can save him from a heavy fall in the years of crisis, said at a meeting in the state Duma, Central Bank head Elvira Nabiullina.

«Our monetary policy, in our estimation, and according to the calculations, has no suppressing effect on economic growth», — said Nabiullina.

However, the monetary policy of the regulator can help the economy, having in its Arsenal of tools and mechanisms in case of aggravation of economic situation in the country and in the world. As an example, Nabiullina brought the crisis of 2007-2008 and compare them with the period 2014-2015, when sanctions were imposed against Russia. The transition to the regime of floating ruble exchange rate and inflation targeting helped to reduce the cumulative fall in GDP — it was three times lower than in the previous years of crisis, said the head of the Central Bank.

In addition, the monetary policy of the regulator in part of inflation targeting allows you to maintain real incomes, not nominal, «what’s the point of what people got paid, and tomorrow the price rose, and they didn’t buy anything for her», said Nabiullina.

«We are talking about the purchasing power of wages, and low inflation allows purchasing power to support. And now real wages are rising», — said Nabiullina.

The Bank of Russia in the midst of the financial crisis on the backdrop of the collapse of the ruble and lower oil prices in December 2014 increased the key rate from 10.5% to 17%, which allowed to reduce the volatility in the financial market and by increasing the attractiveness of deposits to stop a flight of depositors from banks.

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