Top Russian money officials had a heated debate about their country's financial future at a major business meeting. Economic Development Minister Maxim Reshetnikov thinks Russia faces serious economic trouble ahead. Central Bank head Elvira Nabiullina disagrees and says the country just needs to cool down from growing fast. Finance Minister Anton Siluanov compared the situation to cold weather that will warm up later.
Reshetnikov pointed out that people are putting more money into savings accounts instead of spending it. He believes the high interest rates make businesses afraid to borrow money for new projects. Nabiullina explained that people wanted to buy more things than companies could make. She thinks this caused the economic problems they face right now.
The officials started talking about music when they discussed rising prices. Reshetnikov said classical pieces like Rachmaninoff better describe how prices change than Beethoven does. Nabiullina joked they should talk about music instead of making bets about the economy. The Central Bank wants to keep price increases at four percent this year.
Siluanov believes controlling inflation depends on having faith it will work. Reshetnikov asked his colleagues to show more care for the economy. Nabiullina promised to lower interest rates when prices stop rising fast. She said people are earning more money and spending it on goods and services.
Reshetnikov pointed out that people are putting more money into savings accounts instead of spending it. He believes the high interest rates make businesses afraid to borrow money for new projects. Nabiullina explained that people wanted to buy more things than companies could make. She thinks this caused the economic problems they face right now.
The officials started talking about music when they discussed rising prices. Reshetnikov said classical pieces like Rachmaninoff better describe how prices change than Beethoven does. Nabiullina joked they should talk about music instead of making bets about the economy. The Central Bank wants to keep price increases at four percent this year.
Siluanov believes controlling inflation depends on having faith it will work. Reshetnikov asked his colleagues to show more care for the economy. Nabiullina promised to lower interest rates when prices stop rising fast. She said people are earning more money and spending it on goods and services.
