Putin tips central bank chief Nabiullina for third term to guarantee economic stability

© . FILE PHOTO: Russian Central Bank governor Elvira Nabiullina speaks during an interview in Moscow, Russia, June 27, 2019. REUTERS/Evgenia Novozhenina//File Photo () – Russian President Vladimir Putin has proposed to the governor of the central bank Elvira Nabiullina for a third term in an effort to ensure macroeconomic stability, spokesman Dmitry Peskov said. A surprise appointment in 2013, 58-year-old Nabiullina, an economist and former adviser to Putin, is the first woman to become president of one of Russia’s most respected institutions. Her current term ends in June and on Friday, Putin asked the House of Representatives, or Duma, to consider his proposal for re-election on March 21. speaks regularly with Nabiullina,” Peskov told reporters daily. Nabiullina is a committed inflation fighter, resisting calls from powerful industrialists and the Ministry of Economy for rate cuts to revive growth. The bank maintained its key rate at 20% on Friday after a significant emergency hike at the end of February. Nabiullina is due to issue a monetary policy statement at 1400 GMT, no questions asked. “Reappointment removes unnecessary questions from various ‘influence groups’,” said Dmitry Polevoy, investment director at Locko Invest. “It is clear that in the current environment the economy needs a stimulative monetary policy that will further influence the trajectory of the policy rate. But it seems that there will be no radical change in approach given the reappointment of Nabiullina.” The central bank raised its key rate from 9.5% on Feb. 28, as the ruble plunged to record lows and people rushed to withdraw money from banks after an unprecedented barrage of Western sanctions against Russia for what it called a “special military.” operation” in Ukraine. † “The Russian economy is entering a large-scale structural transformation phase, which will be accompanied by a temporary but inevitable period of elevated inflation,” the central bank said on Friday. An independent poll of analysts at the request of the central bank this month forecast inflation of 20% and an economic contraction of 8% this year, while the key interest rate would average 18.9%. The central bank did not provide inflation and economic growth forecasts on Friday, saying only that gross domestic product would decline in the coming quarters and that it expects annual inflation to return to its 4% target by 2024. Before the wider military conflict between Russia and Ukraine erupted in late February, the central bank had revised its year-end inflation forecast to 5.0-6.0%, defeating earlier hopes of a decline to 4.0-0. 4.5% had given up. At the time, it expected inflation to reach the 4% target by mid-2023. Disclaimer: Fusion Media would like to remind you that the data on this website is not necessarily real-time or accurate. All CFDs (Stocks, Indices, Futures) and Forex prices are not provided by exchanges but rather by market makers, and therefore prices may not be accurate and may differ from the actual market price meaning prices are indicative and not suitable for trading purposes . Therefore, Fusion Media does not bear any responsibility for any trading losses that you may incur as a result of using this data. Fusion Media or anyone associated with Fusion Media accepts no liability for any loss or damage resulting from reliance on any information, including data, quotes, charts and buy/sell signals on this website. Be fully informed about the risks and costs associated with trading the financial markets, it is one of the riskiest forms of investment possible.

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