A period of high interest rates in the Russian Federation is needed to combat inflation.
The head of the Central Bank of Russia, Elvira Nabiullina, stated this in her speech before the Federation Council.
She explained that this period is inevitable in the country to reduce inflation, RIA Novosti writes.
She also stressed the importance of this policy to protect citizens' income.
According to Nabiullina, raising the key rate helps reduce demand and slow inflation.
The head of the Central Bank of the Russian Federation explained that as inflation slows, mortgage rates will also decrease.
Last Friday, the Board of Directors of the Bank of Russia decided to raise the key rate to 18 percent.
In December last year it reached 16 percent and has remained unchanged since then.
