Economist suggests how inflation in Russia can be reduced
Reducing the key rate is unlikely to reduce inflation, economist Olga Gogaladze told RIA Novosti . This can only help if structural problems are addressed in parallel, the expert explained. She noted that inflation in the country is currently very stable.
Reducing the rate can only work if structural problems are addressed in parallel: increasing the supply of goods, stabilizing supply chains, and cooling the expectations of the population , Gogaladze explained.
According to her, if the key rate is simply lowered, cheap money will “add fuel to the inflationary fire.” Gogaladze emphasized that the Central Bank of the Russian Federation left the rate at 21%.
Earlier, First Deputy President and Chairman of the Management Board of VTB Dmitry Pianov said that the Central Bank of the Russian Federation would most likely keep the key rate at 21% throughout 2025. He suggested that the situation would change for the better in 2026.
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