MOSCOW (Realist English). Bank of Russia Governor Elvira Nabiullina said on Monday that the Russian economy is proceeding “according to the scenario of a managed exit from overheated demand,” signaling a controlled slowdown as the central bank begins cutting interest rates.
“Demand growth has slowed, while production capacity is expanding and gradually catching up,” Nabiullina told lawmakers during a joint session of State Duma budget committees, according to Interfax.
She emphasized that the goal is to end the period of rapid price growth “as quickly as possible” without damaging the country’s productive potential or triggering an economic contraction.
“The key task is to ensure that the economy returns to a path of sustainable growth amid declining inflation — allowing companies to control costs, citizens to preserve savings, and interest rates to normalize,” she said.
Nabiullina noted that a slowdown in real GDP growth was inevitable “under any key rate scenario.” The central question, she added, is whether this deceleration happens “with accelerating prices and an inflationary spiral,” or within a framework of disinflation and long-term stability.
The central bank plans to continue cutting its key rate throughout next year, Nabiullina confirmed, as part of a broader strategy to balance growth and inflation following last year’s demand surge.
