Putin Keeps Nabiullina as Central Bank Chief Due to Personal Loyalty

What was said

"Putin never forgets these things. He's always fiercely loyal to the people who execute for him and he's never in my opinion going to sack her and so long as Nabulina wants to remain head of the central bank. She will she will continue in that position and she will always be overcautious on interest rate policy. It's a reality that anybody who deals with the Russian economy has to accept."

Alexander explains that despite widespread criticism of Elvira Nabiullina's interest rate policy, Putin will not replace her as central bank head because of her past loyalty and execution during critical moments, including cleaning up the banking system and stabilizing the economy in 2022. This personal loyalty overrides performance concerns about her overcautious monetary policy that has maintained real interest rates at 10 percent for extended periods. The dynamic reveals how personal relationships at the highest levels of Russian leadership shape economic policy regardless of its broader impact.