Cbank: Risk balance in Russia’s economy backs policy softening

MOSCOW, Jun 6 (PRIME) -- The current risk balance in Russia’s economy speaks well for a gradual softening of the monetary policy, the central bank said in a report on economic trends on Tuesday.

“Inflation is near the target level amid favorable external economic and financial conditions and a moderately tough monetary policy. The economy has entered a trend of slow, but stable growth. The present risk balance supports an idea of gradual softening of the policy,” the report read.

The central bank said that the risk that the inflation target may be overshoot in 2017 has declined in the past months.

“However, a high trend inflation rate demonstrates risks of topping the inflation target in the medium term. A softer monetary policy may lower the inflation rate,” it said.

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