Putin publicly backs Nabiullina
Vladimir Putin this week showed that he has no intention of allowing Central Bank chair Elvira Nabiullina to stand alone against mounting criticism from big business over her interest rate policy.
Russian President Vladimir Putin publicly endorsed Central Bank Chair Elvira Nabiullina this week, assuring her support against growing criticism from large businesses over her interest rate policy. This shift in stance came after Putin had previously called for rate reductions twice during the summer. Speaking at the Eastern Economic Forum in Vladivostok, Putin emphasized that monetary policy was not overly tight, cautioned against excessive money supply, and affirmed the bank's efforts to combat inflation.
In contrast to his previous advocacy for rate cuts, Putin warned against the dangers of rapid monetary inflation and potential stagnation, while acknowledging the importance of avoiding an overly cooled economy. The Central Bank recently implemented two cautious rate cuts, reducing the key rate to 14%, amid a public disagreement between the bank and Russian businesses.
Putin's backing of Nabiullina comes at a crucial time, as she only has six months left in her current term, potentially requiring a replacement or a law allowing her to serve a third term.
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