Wednesday, April 8, 2015

Elvira Nabiullina: I am not Ben Bernanke

Good for Elvira.

Russia’s central bank will abstain from quantitative easing, Russian central bank Governor Elvira Nabiullina said at the annual meeting of the Association of Russian Banks.

“There’s no reason to expect QE from us -- our main instrument is the key rate,” Nabiullina said Tuesday. “I understand the sincere wish both to make loans more accessible and to spur economic growth. I understand these goals but believe that the recipes used by many countries won’t work and will have the opposite effect in the conditions of our Russian economy.”

The recent tight monetary policy of the Bank of Russia had a stabilizing effect, countering inflation and devaluation expectations and helping ward off the “scenario of stagflation,” according to Nabiullina.

“With the easing of inflationary risks, the Bank of Russia will continue to decrease the key rate,” she said. “We don’t intend to reduce inflation at any cost, but will do it considering the capabilities of the Russian economy."

Nabiullina shouldn't be considered the female equivalent of Joe Salerno running a central bank, but she is much better then the rest of the current lot of central bankers.


1 comment:

  1. Europe’s Plunging Borrowing Costs Mark Two New Milestones Switzerland is first with 10-year bond at negative yield as Mexico lines up 100-year euro bond

    Extraordinary times: Switzerland becomes first country ever to issue 10-year debt with yield under 0% (minus 0.055%)