Contrastingly, beginning from early 2021, we have been recording a rise in prices for an increasingly larger number of goods. This is evidence that the impact of aggregate demand factors on observed inflation is intensifying. This in turn proves that accommodative monetary policy has already made the necessary contribution to creating the conditions for economic recovery. We expect that Russia’s GDP will return to its pre-pandemic levels already in 2021 H2, possibly by the middle of the year. What might happen if we delay the end of accommodative monetary policy? First of all, inflation would remain elevated. Its rate is elevated at the moment. This would undermine the purchasing power of households’ incomes. Second, deposit rates would remain low. This would adversely affect both the purchasing power of savings and households’ demand for deposits as a store of value. Eventually, the banking system would have fewer resources to further support economic development and promote the growth of economic potential. Third, if an increase in the key rate was delayed, this would prolong the period of elevated inflation and, thus, higher inflation expectations. A delay might force us to raise the key rate more significantly and not only return to a neutral rate (which ranges from 5% to 6% in nominal terms), but, possibly, even switch to tight monetary policy. I would like to emphasise once again that we were able to shift towards accommodative monetary policy last year solely because we had been keeping inflation at a low level for several previous years.

Many market participants have considered CTCs useful for a number of reasons:  BIS central bankers’ speeches  3  •  one, through centralising treasury activities, CTCs help effectively translate management’s vision into firm-wide policies, such as preferences on operating currencies, hedging and day-to-day transactions;  •  two, CTCs help lower funding costs through the optimal use of intra-group funding and netting, as well as external financing; make more co-ordinated use of corporate balance sheets, and; enable corporates to more effectively tap capital markets for longer term funding;  •  three, they help optimise working capital positions and facilitate daily sales through customised transactional arrangements. And by concentrating excess liquidity in CTCs, senior management can achieve better visibility and control over their cash and reduce frauds; and  •  four, they act as corporate centres to consolidate various foreign exchange and interest rate exposures and allow centralised hedging on net positions. Therefore, corporates can eliminate redundant procedures to reduce associated costs and enhance efficiencies. 17. In addition, more and more corporates are adopting technologies, such as the “Enterprise Resource Planning” System and the “Treasury Management System”, which enable them to improve control over local subsidiaries’ activities and standardise treasury operations. All in all, CTCs can play the critical role of an inhouse bank within a multinational corporation and a function that multinationals should develop in tandem with their global expansion plans. Hong Kong as a preferred CTC location 18.