Russian Finance Minister Anton Siluanov called for accelerating the normalization of fiscal and monetary policy, since the rise in inflation in the country, which reached 5.9 percent, indicates “overheating.” He stated this at the macroeconomic session of the St. Petersburg International Economic Forum (SPIEF-2021), the broadcast was conducted on website Events.
Siluanov warned that if we continue to increase the volume of budget expenditures, then the threat of depreciation of money, social benefits, and salaries will increase. In other words, government spending will be useless and will not improve the standard of living of citizens.
According to the minister, the further the government delays the departure from the current concept, the more difficult it will then be to get out of the “super soft” budget and monetary policy.
Earlier, the chairman of the Central Bank Elvira Nabiullina warned about the problems due to the acceleration of inflation. In her opinion, such dynamics will hurt economic growth.
The head of the regulator pointed out that if it had not been for the rate hike at the latest meetings, it would have had to be raised even higher in the summer. She recalled that inflationary expectations of citizens have updated a four-year record. Against this background, in April, the key rate was raised by 0.5 percentage points, to five percent.