The head of the Ministry of Economic Development Reshetnikov urged to return to the previous equilibrium exchange rate of the ruble
The key rate was reduced by 3% by the decision of the Central Bank of the Russian Federation and now stands at 11%.
This decision was made against the background of the strengthening of the ruble against the dollar and the euro and a slowdown in price growth, which reduced the risks of financial stability.
Recall, according to an estimate on May 20, annual inflation slowed down and amounted to 17.5%.
Moreover, it is expected to decrease to 5.0–7.0% in 2023 and return to 4% in 2024. This is influenced by monetary policy.
It is also noted that in the coming weeks, another reduction in the key rate is allowed at an extraordinary meeting.
Meanwhile, Mayor Reshetnikov called for a return to the previous equilibrium exchange rate of the ruble, since the current exchange rate and its forecast are a problem in the long term.
He explained that the effective ruble exchange rate is 40% stronger than the average over the past five years. And this poses a serious challenge to the domestic producer, since with the gradual restoration of external supply channels, he will increasingly feel the pressure of imports, compete with him and lose.
At the same time, while maintaining the current ruble exchange rate, Russian business will not be able to develop import substitution projects, as there will be no competitiveness.
Earlier, Topnews wrote that pensions, the subsistence minimum and the minimum wage will be increased by 10% in Russia from June 1.
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