Expectations of the population and incorrect budgeting business indicate a shaken confidence in the monetary policy conduct by the Bank of Russia. To what extent would it be advisable to change the inflation target in such conditions? Will this change not lead to an even greater threat of a decrease in confidence in the policy being conduct?
We are not talking about a decrease
in confidence in the monetary policy. We are talking about the fact that it takes more than four years to achieve a level of anchoring of inflation expectations and, accordingly, confidence in the monetary policy comparable to those central banks that have successfully kept inflation low for several decades. This is not a new message, we have been talking about this since about 2019. At that time, many analysts stat that inflation expectations with inflation at 4% and even lower were already anchor. We gently but consistently oppos this. It seems to me that the experience of 2021 has very clearly demonstrat that a more restrain, modest assessment of the successes achiev is more balanc.
Turning to the second question
to what extent can a refinement how to write a blog that ranks higher in search engines of the inflation target be justifi in the context of an elevat inflation background and still unanchor inflation expectations, I would like to draw attention to two agb directory points here. First, a change in the inflation target is not an inevitable result of the monetary policy review. We view the monetary policy review as the first