Tightening monetary policy will help slow inflation and reduce the risk of a spontaneous contraction in demand.
Otherwise, the risk is higher that the pendulum will swing towards recession.
Deputy Chairman of the Bank of Russia Alexey Zabotkin explained in an interview with Rossiyskaya Gazeta the danger of economic overheating.
He explained that significant overheating in the Russian economy could lead to a recession.
Timely tightening of monetary policy helps reduce demand and the risk of its sudden contraction.
The expert emphasized that high rates of economic growth in the country have been observed for several quarters.
Previously, they were accompanied by a moderate increase in prices, but in the spring of 2022 there was a sharp jump.
According to Zabotkin, over the past year, the growth in the production of goods and services is associated not only with the expansion of production, but also with overheating demand.
The expert warned that this is precisely what indicates a significant increase in inflation and this is precisely what the Russian Central Bank is trying to avoid.
