Monetary conditions will remain soft until the key rate returns to its neutral range of 5-6%, governor of the Central Bank Elvira Nabiullina says on Friday.
“Monetary conditions will remain soft until the key rate returns to the neutral range – and we still estimate it from 5% to 6%. This will make possible to keep lending, which is currently on the rise, with annual rates close to maximums in late years,” she said.
Preferential lending programs implemented by the government exert significant influence on monetary conditions, Nabiullina noted.
“Further softening they provide depends on program volumes, subsidizing amounts and maturity of loan instruments covered by them,” she added.
