Russia’s central bank Governor Elvira Nabiullina said in a Reuters interview, the Central Bank of the Russian Federation (Bank of Russia), will soon bring an end to its rate-cutting cycle and adopt a neutral monetary policy stance, despite the risks of increasing inflationary pressures.
Russia’s consumer price inflation is seen steadying at an annual 2.4 percent.
Key Quotes:
“We should switch to neutral monetary policy in the short run.
For now, we think that the level of the neutral rate is in the corridor from 6 to 7 percent, closer to the upper boundary.
A recent rise in fuel prices was a concern for the central bank as rising petrol prices result in higher inflationary expectations.
If some factors emerge which increase inflationary risks, we would need to again switch to a tighter policy.”
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