A conflict of interest concern arises where an official has personal interests that may influence, or may be perceived as influencing, the impartial and objective carrying out of their duties and responsibilities and also extends to, but is not limited to, their direct family members (any parent, child, brother or sister), spouses or partners. - Rules on private financial transactions: officials shall comply with the material rules on private financial transactions laid down in the Ethics Framework of the ECB. It is recommended that officials place their investments under the control of one or more  12  recognised portfolio managers who have full discretion for assets which go beyond those required for ordinary, personal and family use. - Other rules: (i) officials shall not solicit, and shall exercise caution when offered, any advantages which are connected in any way with the duties and responsibilities conferred on them; (ii) officials shall be confident that any award, honour or decoration is compatible with their public status and does not compromise their independence or raise conflict of interest concerns; (iii) officials may only accept invitations to widely attended events such as conferences, receptions or cultural events, if their participation is not adverse to the ECB’s interest, and shall observe particular prudence with regard to individual invitations. 13
This is necessitated by the still high sensitivity of inflation to oneoff factors, as well as its inertia and elevated inflation expectations. As they stabilise close to the target level of inflation, prices are expected to be less responsive to various short-term factors. These new conditions would see no need for additional tightening in the monetary policy stance to ensure that inflation holds near 4%. This conservative strategy in monetary policy may appear unattractive short-term; however it will enable us to deliver on a more sustainable result in the mid-term, that is, deliver on the objective to establish in Russia a low price and cost growth environment – such that favours both households and businesses, as well as the overall economy. Q&A for the Media QUESTION from Vedomosti: Given the Bank of Russia’s move to reduce the rate and its guidance that further rate reduction is not impossible in the second and third quarter, does that suggest that the Bank of Russia has launched a monetary loosening cycle? ELVIRA NABIULLINA: An easing cycle is understood as a process of sequential rate reduction, decided at each policy Board meeting. Having said that, we acknowledge that the sequence of rate cuts may be interrupted, though this would not run counter to an overall mid-term downward movement of the rate. We will move forward with care and precision. For the most part we will be largely guided by economic data as well as, certainly, by our forecasts.