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Russia Questions Inflation Goals Derided as `Numerical Fetishes'

  • Government forecasts show inflation overshooting target of 4%
  • Central bank set for longer rate halt on risks, economists say
Updated on

President Vladimir Putin’s government may have just given Bank of Russia Governor Elvira Nabiullina the ammunition she needs to hold interest rates for longer.

Economy Ministry forecasts, backed by the government last week, show inflation won’t slow to 4 percent until 2019, two years later than targeted by policy makers. That will strengthen the central bank’s resolve to stand pat, according to Alfa Bank and Goldman Sachs Group Inc. The Bank of Russia, which most economists predict will leave its benchmark unchanged at a meeting on Friday, already warned last month that its “moderately tight” policy may last longer than previously planned after a pause since July.