In Russia, it is necessary to reduce inflation and inflationary expectations of the population as soon as possible. This was stated by the head of the Central Bank Elvira Nabiullina during the government hour in the Federation Council.
“Our people remember the huge inflation of the 90s, the high inflation of the zero years, and when there is a surge in prices – especially for food, consumer goods, they expect inflation to rise. money will depreciate, make large purchases – even in large loans, expecting that the necessary goods will rise in price. This in itself pushes inflation up “, – said the head of the regulator, adding that the government’s task is” to prevent the inflationary spiral from unfolding. “
According to Nabiullina, many countries view the rise in inflation as a temporary phenomenon, but Russia “cannot afford this.”
The head of the Central Bank recalled that annual inflation in Russia will return to the level of 4-4.5% in the second half of next year. The mid-term forecast of the Ministry of Economic Development foresees that by the end of 2021 inflation will be 5.8%. Moreover, in the July forecast, this figure was estimated at 5%.
The second topic of Nabiullina’s speech is the high debt load of Russians. According to the Central Bank, in the second quarter of 2021, the share of borrowers who spend more than 80% of their income on loan servicing increased to 30% (before the pandemic – 23%). “If the situation develops unfavorably, many borrowers will not be able to service loans. These are both social and financial stability risks,” Nabiullina explained.
According to her, the Bank of Russia intends to further “cool” the consumer lending market. So, from October 1, new loan premiums will come into force. In addition, the regulator proposes to establish quantitative restrictions on the issuance of risky loans at the legislative level.
Annual inflation will return to 4-4.5% in the second half of 2022, according to the Bank of Russia
Another measure proposed by the Central Bank is to extend the mechanism for limiting the full cost of loans to all types of loans, not just mortgages. “In order for people to see the fair cost of a loan with all the” wound options “, from the middle of next year, the requirement to limit the full cost of a mortgage loan will come into force. But we consider it important to extend such a mechanism to all loans, this requires a change in legislation,” Nabiullina.
According to her, the maximum interest rates, fines, and penalties on loans should be severely limited, in particular, in microfinance: “So that a person does not find himself in a situation where he was expecting some conditions, but in the end he has to pay more.”