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Nabiullina: a high rate of the consumer lending growth can cause inflation risks

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Nabiullina: a high rate of the consumer lending growth can cause inflation risks

Nabiullina: a high rate of the consumer lending growth can cause inflation risks
September 09
14:30 2016

Elvira Nabiullina, Governor of the Bank of Russia, considers that high rates of the consumer lending can cause inflation risks.

In particular, in the speech at the banking forum in Sochi she said: “We are concerned about the risk of the probable rapid growth of unsecured consumer lending, which can slow down the process of the inflation reduction.”

The Governor reported that the loans to the public, excluding foreign exchange revaluation, had increased by 0.8% last month. It is more than loans for enterprises – against 0.2%.

“The structure of the loans growth has more inflationary character than if the corporate loans to support the new production would grow faster than loans to support the consumer demand”, – said the head of the regulator.

In early September this year the Bank of Russia Research and Forecasting Department reported that the factor of the credit debt was slowly ceasing to control the dynamics of the consumer spending.

The experts of the Department said that in the conditions of the high credit burden, a large amount of cash, which potentially could be spent on the consumption, had been headed by the population for the loan payment for a long time. At the same time the need to repay the underlying debt caused an increase in the savings rate.

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