Interview with Andrey Gangan for Komsomolskaya Pravda

On December 2022, the Central Bank of Russia issued an update regarding a recent interview with Andrey Gangan for Komsomolskaya Pravda. The update discussed the current economic situation in Russia, including high interest rates and inflation, and how the Central Bank is working to manage these issues. The Central Bank has increased the key rate to 21% to combat rising inflation and credit growth, which has led to a surge in market interest rates. Despite this, deposit rates have also increased significantly, reaching over 20% year-on-year. The Central Bank aims to reduce inflation to 4% and maintain financial stability. The interview highlighted the importance of managing economic expectations and making saving more attractive as part of the strategy to combat inflation. It also emphasized that the current high interest rate policy is a response to overheating demand, not a reaction to external factors like in 2022. Andrey Gangan explained that the Central Bank's goal is to ensure moderate credit rates are available to all parties, which can only be achieved with low inflation. He also noted that high interest rates are temporary, but rising prices can persist forever. The Central Bank aims to break the cycle of price growth through monetary policy, including making saving more attractive. The current high interest rate period is expected to continue for a year or longer, with rates remaining above 17% year-on-year.