Cbanker says Russia should restrain ruble growth with fiscal rule

MOSCOW, Oct 12 (PRIME) -- Russia’s central bank does not plan to abandon the floating rate of the ruble, but there should be a fiscal rule that would restrain its growth, Chairwoman Elvira Nabiullina said on Wednesday during a Russia Calling! Forum.

“We do not plan to reject the floating rate, but we understand that competitiveness…of a diversified economy depends on the real rate. My opinion is that there should be a fiscal rule that will also allow us to restrain strengthening of the ruble’s real rate. Which means that the budget policy should decrease dependence of spending and revenues on circumstantial incomes from oil,” she said.

“There should be a fiscal rule. And we should not repeat the mistake and conditions we had in the mid-2000s when we had a strengthening ruble, and we should not again fall into the trap. We should introduce a new budget rule after a period of budget adaptation, which will take some time, as the finance minister has said.”

But the ruble will not devalue again, like it was in 2014, she added.

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