According to Gennady Melikyan, the first aftereffects of toughening have brought fruit, the remaining are getting revealed only today.
Photo: Grigory Burtsev
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CBR Doesn’t Push Too Hard
Central Bank of Russia has no intention to further toughen the monetary and credit policy and extend the already taken actions, said CBR First Deputy Chairman Gennady Melikyan. The summer surge in the CBR rates and mandatory reserves has lowered the speed of the banking system, and the first signs of slowdown of industry and economy investments are evident already. The pause in the state control will probably continue till the end of the fall.
Further toughening of monetary and credit policy will lower the growth rates of the banking system, CBR First Deputy Chairman Gennady Melikyan said Friday during the Bank Congress in Nizhni Novgorod. By toughening, the official meant the surge in the interest rates and mandatory reserve volume. Starting from September 1, 2008, they will increase for the fourth time this year.
The arguments of Melikyan mostly related to the banks. Less Sberbank, the assets of the banking system stepped up 16.3 percent (23.9 percent a year earlier) in January through July of 2008, own capital grew 13.2 percent (32.5 percent), credits to nonfinancial organizations widened 24 percent (28.5 percent), Melikyan reminded.
The essence of the CBR message could be even broader. According to Yaroslav Lisovolik from Deutche Bank, the matter at stake is not only the banking slowdown, it is rather the slowdown of economy in general. CBR has come off with flying colors in the recent months – the rates of money supply growth match the monetary and credit guidelines for 2008 and the signs of inflation containment are evident. Nowadays, however, CBR has to wait and see the efficiency of its policy, checking it for absence of grave aftereffects.
www.kommersant.com
All the Article in Russian as of Aug. 25, 2008
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