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Nationalization, reduction of key rates and capital flight: the main statements of the German Gref at the Eastern Economic Forum

Date: July 12, 2024 Time: 22:32:04

Chairman of the Board of Directors of Sberbank German Gref

Photo: REUTERS

At a press conference with the participation of the President and Board of Directors of Sberbank, German Gref, during the VIII Eastern Economic Forum (6+), the most important issues for people and companies were discussed: increasing the key rate, the capital outflow, limiting transfers of rubles abroad, property rights and regulation of artificial intelligence, which increasingly enters our lives.

Key rate will decrease

– The main question that worries Russians is whether there will be an increase in the key interest rate.

– Personally, I do not expect the key interest rate to increase. Very little time has passed since the previous promotion. It is still difficult to assess the consequences of the regulatory measures that have been introduced. The final decision must be made by the Bank of Russia. As far as we are concerned, it is clear that raising the key interest rate is not the only measure being taken as part of the tightening of monetary policy. The fight against inflation is always a balance between economic growth and the impact on inflationary trends. Measures have been taken to maintain financial stability. I believe that the Central Bank will adjust its position depending on how the market reacts to the measures introduced.

When asked how long we can live with the key interest rate, German Gref replied that it is not a very long story, because the Central Bank has learned to work with inflationary increases:

– I think that within three months it will be clear how the situation will develop and during the next three months conclusions will be drawn from it. All the measures taken will have their effect and I believe we will begin a cycle of decline.

About ruble transfers

The president of Sberbank also commented on the possibility of limiting ruble transfers abroad to preserve the national currency. He noted that today there is a flight of Russian money and over-the-counter operations.

– It is very difficult to find a formula that, with multidimensional regulation, can give the expected final result. I have never been a big supporter of monetary regulation, since the modern world is so technological that any exchange control measure is easy to circumvent. However, we are now seeing capital flight through ruble assets, which did not happen before. It is clear that regulatory measures are needed.

become desert

The issues of regulating artificial intelligence were also discussed. After all, those countries that approach this carefully and thoughtfully are experiencing a boom in AI development.

– There are examples of proactive regulation of artificial intelligence, when countries become a desert in terms of attractiveness for specialists and companies involved in AI. Europe is an excellent example in this sense. Today, it is impossible to imagine a greater blow to the development of digital technologies and artificial intelligence in Europe than their regulation. Companies leave and specialists leave. Therefore, we must do it very carefully so as not to end the country’s competitiveness in this sense,” concluded the president of the board of directors.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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