Nabiullina Lauds Positive Real Rates as Key for Russian Growth

Central bank Governor Elvira Nabiullina has a message for Russian businesses that may be finding it difficult to adapt to positive real interest rates: get used to it. 

The Bank of Russia will continue its “moderately tight” monetary policy, with the inflation rate now below its benchmark for the past eight months, Nabiullina told a banking conference in the Black Sea resort city of Sochi on Friday. Keeping real interest rates stable in positive territory is an “important condition for healthy economic growth,” she said. 

The main drivers of growth should be “fixed investment, structural changes in the economy and efficiency increases,” Nabiullina said. “It’s necessary to safeguard household deposits against inflationary depreciation to support a high level of savings and to create the conditions to transform them into investment.”

DYI Comments:  What has this world come to where most of the common sense government policies are coming from - no other than  - RUSSIA?!  Their central bank governor is "spot on" by safeguarding savers from inflation will flood their banks with deposits will most definitely foster future investment AND THE CREATION OF NEW JOBS!  A very sound platform for our central bank.  Don't hold your breath the Fed's are hell bent and determined to throw us all over the cliff.

DYI