Central Bank and government economic development plans may not coincide
The main task of the renewed government is to accelerate Russia’s economic growth, which differs from the prior plan to strengthen the budget, what the previous cabinet adhered to. Thus, the Central Bank will have to independently control inflation. It was reported to Forbes by a leading analyst at Alfa Bank Natalia Orlova.
The economist also told that due to the new regime of government, the comfort zone of the Central Bank will be significantly reduced. Before, the regulator and the government had the same views on reform and economic policy. Thanks to this, the Central Bank received support from the budget for the transition to the inflation targeting regime.
The departure of Anton Siluanov from the post of First Deputy Prime Minister means that strengthening the budget will not be the main goal for the future. It is likely that fiscal and monetary policies will work in different directions.
In his message to the Federal Assembly on January 15, Vladimir Putin set the task for the government to increase the growth rate of the economy over world average. The appointment of Andrey Belousov to the post of First Deputy Prime Minister confirms that the government will focus on the development of national projects. Previously, he led the Ministry of Economic Development and was an assistant to the president.