OREANDA-NEWS If the Bank of Russia reduces its inflation target of four percent, it will be no earlier than 2029. This, as reported in the Telegram channel of the regulator, was stated by Deputy Chairman of the Central Bank Alexei Zabotkin.

According to Zabotkin, the steady rate of price growth has not yet dropped below four percent, but we can already talk about significant progress in reducing inflation. At the same time, he assured that the Bank of Russia has no plans to raise the target inflation rate.

Zabotkin stated that in 2024, inflation exceeded four percent for the fourth year in a row. Moreover, the deviation from the target even intensified due to the powerful impulse to expand domestic demand, which seriously outstripped the possibilities of increasing supply. Monetary policy has been tightened in response to this development.

"We can already see the results. The rate of price growth has been steadily and significantly slowing down this year. We believe that the achieved monetary policy rigidity is sufficient for annual inflation to return to the 4 percent target by the end of 2026," the deputy chairman stated.

Earlier, Zabotkin also considered that a premature reduction in the key rate would lead to additional budget expenditures.