the Traditional annual report of the Bank of Russia was, as always, full of positive. Presented in the state Duma, Central Bank head Elvira Nabiullina has listed the goals and objectives that in 2019, the regulator emphasized: the stability of the exchange rate, keeping inflation at a low level, improving the financial literacy of the population, the accumulation of foreign exchange reserves. And then the Central Bank was criticized by the deputies from the opposition factions.
it came Down to the fact that the actions of the Central Bank generally does not affect the economy: GDP falls, investment falls, people get poorer and the office Nabiullina seems to stand above the fray and from year to year repeats its “inflation mantra”. In General, terribly far Bank regulator from the people.
In his half-hour speech, Nabiullina fit a lot of different theses, but the main is seen as follows: “loose monetary policy will not result in the devaluation of wages and savings of our citizens, and will help maintain inflation close to our target of 4%”. In other words, as the Central Bank may cut the key rate (and it is true to this course), anybody will not be worse.
In the ensuing parliamentary replica enormous conceptual gap between what is said Nabiullina and the Central Bank against its main opponents.
the Head of the Duma budget Committee Andrey Makarov, which certainly do not belong to the detractors of the Bank of Russia have noticed that we have “something wrong with economic growth” and that “only by monetary means the economy is not to raise”. According to the parliamentarian, may 1, on Deposit accounts of business entities is 26.3 trillion rubles. The money you could invest in the economy without interest, but entrepreneurs do not want to risk, fearing the security forces, who have taken business. And then, the Central Bank completely powerless, that’s the problem not his, and the investment climate. Makarov’s message was addressed not to the Central Bank, but rather to the government, but on the academic background of the report Nabiullina he sounded very sharply.
And then came the video critic. In particular, the Deputy from Communist party Nikolay Arefiev recalled set by President Vladimir Putin to the task: by 2024, to bring Russia into the top five economically developed countries and to reduce poverty in half. You must obey all the institutions in our country, said Arefiev. In his view, in recent years, the government and the Central Bank focused only on a single objective – the reduction of inflation. In the result, slow down the pace of development of the economy and reduced the standard of living of the population.
Interviewed by “MK” experts believe these claims are unfounded. The role and status of our Bank and is not comparable with the same position of the Federal reserve in the United States, says the Director of the Institutea strategic analysis FBK Igor Nikolaev. The American economy is highly dependent on the size of the key rate, we have not. In Russia it is rather a very delicate instrument – screwdriver, not a sledgehammer. It can be used to influence the inflation on the exchange rate, but not on investment activity. Do not put the blame of the Bank the General poor state of the economy. And all with regard to incomes, investment climate, and resources of the national welfare Fund, taxes, government regulation is in the competence of the government, not the Central Bank. “However, it is very convenient – put the arrow on someone”, – concluded the expert.
the Central Bank should not develop the economy: this is the business and economic development, said, in his turn, the head of IAC “Alpari” Alexander Razuvaev. On the one hand, MPs, traditionally accusing CB of all mortal sins generally not too professional versed in economic realities. On the other hand, the expert continues, these people irritate the independence of the Bank of Russia: they would have preferred to see in its place of the regular Ministry, which would firmly subordinate to the Prime Minister.
But it is necessary to consider a number of moments. For example, the one in Russia during a pandemic coronavirus collapsed, no systemically important Bank that inflation remained around 3% with a target of 4% that the quotes of the ruble and the stock is not collapsed. Now the Bank is very strong team, key professionals come from leading Russian private financial companies and banks. Have Razuvaev, according to him, only one claim to the Central Bank: too drastic and unjustified reduction of the key rate. This leads to a drop in interest rates on deposits, dealing a direct blow to the savings.
