The head of the Central Bank warns Russians about the risks with deposits and loans

What awaits the Russians

The Bank of Russia decided to sharply increase the key rate to 21% per annum, which was an unprecedented step in the fight against rising inflation. The head of the Central Bank, Elvira Nabiullina, explained this decision by the need to stabilize the economy and slow down price growth. However, despite these measures, achieving the 4% inflation target by 2024 remains in doubt.

Reasons for increasing the key rate

According to Nabiullina, the main factor behind inflationary pressure is excess demand, which is fueled by significant savings by the population. The Central Bank does not rule out a further rate increase if current measures prove ineffective. All future decisions will depend on inflation dynamics and the results of actions already taken.