Krasnodar Territory Governor Alexander Tkachev claimed that the Central Bank raising basic interest rates to a critically high level would impact adversely on the development of the investment climate in the region and in the country, but this was the only right decision.
"Last month we talked about import substitution. There was a prospect of filling niche shelves with Russian and, of course, Kuban produce, but given the current rates, we have to forget about these prospects for some time. This is because no production can evolve in these conditions. If there is a base rate of 17%, then at the output of commercial banks it would be 23-25%. And this trend may increase," opined Tkachev.
According to Tkachev, the Central Bank's actions, "were too late, but was the only right decision."
"Only this way (there are analogues and examples) can we keep inflation and capital outflow from the credit market to the foreign exchange market and the growth of the dollar and the euro. This is also unacceptable, as is the other extreme in which there cannot be sustainable development either. But we have been through this, we have had many crises on the local and the global scale. We do understand that the macroeconomic state of finances is a basic value. If there is confusion in this field, we cannot even dream of any stability or economic growth. So it is a political business to calm down and stabilize the situation," Tkachev is quoted by the portal UGA.
The head of Krasnodar Territory noted that all of the existing tools for this purpose are in Central Bank's and the government's hands, and they will be used as soon as possible.
