the development of digital services, remote work, and online trade has accelerated, the demand for some professions is declining, while the demand for others is growing. therefore, unemployment that has risen during the crisis period might be structural in nature : staff shortages in some sectors might be coupled with higher unemployment rates in other industries. this might induce proinflationary pressure, even if unemployment stays close to prepandemic rates. what does this mean for our monetary policy? 1 / 7 bis central bankers'speeches firstly, russia is one of the countries where the economy is bouncing back fast and has almost reached its pre - crisis level. furthermore, russia is one of the first states which started to tighten its monetary policy. our economy is now close to its potential. if we had continued accommodative monetary policy, it would not have promoted growth any longer, but would have only provoked bubbles in the market. as inflation has risen both globally, and inside the country due to internal and sufficiently steady factors, we need to take committed efforts to bring inflation back to the target. secondly, monetary policy significantly promoted the fast rebound of the russian economy. i mean not only and not so much the reduction in the key rate in spring 2020. the main thing is the result of inflation targeting over recent years. we were able to shift towards countercyclical monetary policy and aid the economy during the crisis, rather than combat the soaring risks of inflation, as we used to before, exactly because we had been maintaining inflation close to the target for a rather long period of time. this reassures us that we have made the right choice and that our monetary policy instruments enable us to achieve our goals in very diverse circumstances. thirdly, shifts in the economy and peoples ’ and businesses ’ expectations and behaviour might require central banks to adjust all their policies, including monetary policies. to this end, most central banks, first of all those pursuing inflation targeting policies, carry out regular in - depth analysis of their goals and instruments, that is, a review of their monetary policies. this year, we are going to make such a review as well. we have been targeting inflation for five years by now. over this period, we were able to maintain inflation close to the target for quite a long time. by the moment, the financial sector and, largely, the society and businesses have a better understanding how this works. professional market participants have their inflation expectations anchored at the long - term target, and, importantly

elvira nabiullina : speech at international financial congress speech by ms elvira nabiullina, governor of the bank of russia, at the international financial congress, 30 june 2021. * * * good morning, dear participants of the international financial congress. today, on the third day of this congress, we will continue to discuss changes in the economy and finance over the eighteen months of the pandemic. we will also talk on the factors influencing future development trends. there are a number of trends that have sped up due to the pandemic, for instance, digitalisation, whereas others have emerged recently, specifically remote work. there are also trends that have reversed, the major one of which is a rise in inflation from long - term low rates in advanced economies. we need to revise the situation and look differently at common developments to comprehend which of them are transitory, and which will stay for a long time or even forever and to identify future systemic risks emerging in this new world and, of course, new strategic opportunities. the global economy is reviving. unprecedented measures implemented by governments and accommodative monetary policies have helped not only curb the spread of the crisis, but also promote a fast recovery. on the other hand, large - scale fiscal stimuli and accommodative monetary policies have spurred inflation. hence, many central banks now have to make tough choices since inflation threatens growth and people ’ s welfare in the future, whereas policy tightening might somewhat slow down the economic rebound already now. furthermore, factors driving inflation vary in different countries. some countries are experiencing only a temporary surge in inflation and might just wait out until it ends. contrastingly, other economies, including russia, are facing a rise in inflation expectations. therefore, no response from central banks could undoubtedly exacerbate the inflationary spiral, while the effect of accommodative policies on growth has been mostly exhausted already. concerns about inflation are aggravated by worries about a faster tightening of global financial conditions. largest economies ’ central banks are now close to the limit in their ultraaccommodative policies pursued for multiple years. if the surge in inflation is not temporary and persists, central banks will be forced to respond. if they tighten their policies, this will cause capital outflows from emerging markets. rising volatility will certainly affect the economy. changes in the labour market also speed up inflation. moreover, this does not seem to be a temporary factor. as