What is the action of the Central Bank of Russia in the economic crisis?

Bank of Russia policymakers held a scheduled meeting on February 28 to support financial stability and strengthen the ruble after doubling the key rate from 9.5 percent to 20 percent, according to Finance.

The currency has fallen to its lowest level since Western sanctions were imposed on Russia over Russia’s actions in Ukraine.

The central bank will begin buying OFZ bonds in the market when the Moscow Stock Exchange resumes bond trading on Monday, said Bank of Russia Governor Elvira Nabiulina.

“Once the financial markets have stabilized, we are planning to sell the entire portfolio to offset the impact of the transaction on monetary policy,” he said.

Trading in stocks and bonds on the Moscow Stock Exchange has been suspended since February 28. Currency trading continues, with the ruble hitting a record low on March 6, which has already intensified consumer inflation.

“The central bank is giving the economy time to adjust to the new and difficult conditions,” Ms Nabiulina said.

He added that the banking system works without any defects after the increase in liquidity by the central bank.

Russia’s central bank said in a statement: “Russia is entering a temporary but inevitable period of rising inflation, and momentary indicators indicate a deterioration in conditions that will cause the economy to shrink in the next quarter.”

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