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Curbing inflation could change Russia's economy in two years: bank chairman

Xinhua, November 3, 2016 Adjust font size:

The Russian Central bank's policy on maintaining its high key rate and curbing inflation could change the economy in two years, said Mikhail Zadornov, chairman of VTB24 bank on Thursday.

"If the inflation rate falls to a 3 to 4 percent level in two years, it will completely change the behavior of both business and the population in Russia", Zadornov said in an interview with the Russian newspaper "Izvestiya."

He also said low inflation has the most beneficial effects on long-term projects, such as manufacturing, infrastructure, as well as scientific and technological projects. "Therefore, we will count on Russian small business," he added.

The VTB24 bank expects the price of Brent oil at around 50 to 55 U.S. dollars per barrel along with higher Russian economic growth and a stronger ruble in 2017.

Zadornov expects economic growth to reach 1.5 percent and the ruble against the U.S. dollar at 63 to 64 rubles. Endi