Speaking at a plenary session of the State Duma on the main directions of monetary policy through 2029, Nabiullina said subsidized programs had given recipients an extremely low mortgage cost, but that this benefit had been "to a significant extent, if not entirely, eaten up by price growth." Those not entitled to the subsidies faced a decline in housing affordability, she said.
"In the end, citizens need not affordable mortgages, they need affordable housing," the Central Bank head said.
Nabiullina named the large volume of subsidized loans as one of the reasons for the high key rate. In her view, subsidies should be directed more toward productivity growth, but she said that is a matter for the government.
She justified the key rate, which has remained high for a third year, "from the point of view of the interests of the economy, citizens and business." "This is a painful period, but we have no choice," she said. Nabiullina named ensuring moderate and predictable price growth as the Central Bank's main task.
She forecast GDP growth within 1% for the year. "And this is even despite the loss of production capacity in certain sectors as a result of attacks. If not for this factor, economic growth this year would, of course, have been higher," Nabiullina said. According to her, the economy is being supported by mechanical engineering, including the defense industry, as well as by growth in incomes and household consumption.
Finance Minister Anton Siluanov, Economic Development Minister Maxim Reshetnikov and Rosfinmonitoring Director Yuri Chikhanchin were invited to the session, RBC reported.